TARIFF ORDER

2012-2013

For

Power & Electricity Department,

Government of Mizoram

JOINT ELECTRICITY REGULATORY COMMISSION

FOR MANIPUR AND MIZORAM
D-31, MG Road, Upper Khatla, Aizawl, Mizoram

Table of Contents

1. Introduction
1
 1.1 JERC (M&M) 01
1.2 P & E Department (PED), Government of Mizoram 03
& Tariff Petition
1.3 Admission of Petition and Public Hearing Process 04
1.4 Notices for Public Hearing 05
1.5 Public Hearing 06
1.6 Meeting of State Advisory Committee 06

2. Summary of ARR & Tariff Petition

2.1 Aggregate Revenue Requirement (ARR) 07
2.2 Tariff 08

3. Power Sector in Mizoram

3.1 Geographical Reality 09
3.2 Power Supply 09
3.3 Transmission and distribution 11
3.4 Transmission and distribution (T&D) losses 12
3.5 Consumer profile and energy sales 12
3.6 Demand 12
3.7 Energy Audit 13
3.8 Energy Metering 13
3.9 Continuity of Power Supply 13
3.10 Financial Position 13

4. Review of ARR of 2010 – 11

4.1 Background 14
4.2 Energy Sales Analysis 14
4.3 T&D loss 17
4.4 Energy Requirement & Energy Balance 17
4.5 Own generation 17
4.6 Purchase of power 17
4.7 Annual Revenue Requirement 18
4.8 Revenue from approved tariffs 22

5. Proceedings of Public Hearing

5.1 Public response to the petition 25
5.2 Public Hearing 25
5.3 Objections/Suggestions 25
5.4 Response of PED 27
5.5 Commissions’ Observations 29

2
6. Analysis of ARR for FY 2012-13
6.1 Energy sales 30
6.2 Consumer Categories 30
6.3 Additional Information & Data 31
6.4 Growth of Consumers and Connected Load 31
6.5 Projected Energy Sales for FY 2012-13 33
6.6 Category Wise Energy Sales Projected and Approved 38
6.7 T&D Losses 38
6.8 Energy Requirement 39
6.9 Sources of Power 40
6.10 Energy Balance 43
6.11 Gross Fixed Assets 45
6.12 Capital Expenditure Plan and Capitalisation 48
6.13 Fuel Cost 49
6.14 Power Purchase Cost 50
6.15 Operation and Maintenance Expenses 53
6.16 Depreciation(Projected) 57
6.17 Interest & Finance Charges 59
6.18 Interest on Working Capital 60
6.19 Provision for Bad & Doubtful debts 61
6.20 Return on Equity 61
6.21 Non-Tariff Income 62
6.22 Subsidy 62
6.23 Aggregate Revenue Requirement 63
6.24 Expected revenue from existing Tariff 63
6.25 Revenue gap with existing tariff 65

7. Transmission and Wheeling Charges

7.1 Transmission Charges 68
7.2 Wheeling Charges 68

8. Directives
8.1 General Status and Compliance of Directives issued in the 69
Tariff Order for FY 2010-11
8.2 Fresh Directives 75

9. Tariff Principles and Design

9.1 Background 77
9.2 Tariff proposed by the PED and Approved by the Commission 79

3
10. APPENDIX Tariff Schedule
1. LT Supply Tariffs 84
2. HT Supply Tariffs 91
3. Common Items 95
4. Miscellaneous Charges 97

11. Annexure
1. Annexure – I: Expected Revenue from Existing Tariff 101
2. Annexure – II: Expected Revenue from Proposed Tariff 102
3. Annexure – III: Minutes of the 9th Meeting of SAC for the 103
States of Mizoram
4. Annexure – IV: List of persons who attended public hearing 108

List of Tables

4
Table – 2.1 Aggregate Revenue Requirement FY 2012-13 07

Table - 2.2 Existing V/s proposed Tariff 08

Table – 3.1 Local generation 09

Table – 3.2 Share from Central Generating Stations (CGS) 10

Table – 3.3 Energy drawal trend from sources outside the state 11

Table – 3.4 Transmission and Distribution Network 12

Table – 3.5 Consumer Profile and Energy Sales FY- 2011-12 12

Table – 6.1 Category-wise consumers and connected load 32

Table – 6.2 Consumer Category-wise Energy Sales 32

Table – 6.3 Revised Sales 33

Table – 6.4 Kutir Jyoti 34

Table – 6.5 Category-wise Energy Sales projected and approved 38

Table – 6.6 Distribution Loss trajectory 39

Table – 6.7 Energy requirement projected for FY 2012-13 39

Table – 6.8 Energy requirement approved by the Commission for 39

FY 2012-13

Table – 6.9 Gross generation from own generating stations 40

Table – 6.10 Allocation of power from central Sector and other 41

Generating Stations

Table – 6.11 Energy purchase projected for FY 2012-13 from Central 42

Generating Stations and other sources

Table – 6.12 Power purchase approved by the Commission for 43

FY 2012-13
5
Table – 6.13 Energy balance projected by PED 44

Table – 6.14 Energy balance approved for FY 2012-13 45

Table – 6.15 Gross Fixed Assets projected by PED 45

Table – 6.16 Revised Fixed Assets and depreciation 46

Table – 6.17 Value of Assets and Depreciation Charges 46

Table – 6.18 Assets consumer Contribution and grants from 48

2007-08 to 2012-13

Table – 6.19 Sector- wise GFA for FY 2012-13 48

Table – 6.20 Capital expenditure and assets Capitalisation 49

For FY 2012-13

Table – 6.21 CAPEX and capitalization projected by PED 49

Table – 6.22 Power Purchase Details for FY 2010-11 50

Table – 6.23 Power Purchase Details for FY 2011-12 51

Table – 6.24 Power Purchase cost projected by PED for FY 2012-13 52

Table – 6.25 Power Purchase cost approved by the Commission 53

for FY 2012-13

Table – 6.26 Employee Cost 54

Table – 6.27 Revised data of employee cost 55

Table – 6.28 Repairs & Maintenance Expenses projected by PED 55

Table – 6.29 Repair & Maintenance Expenses 56

Table – 6.30 Administration and General Expenses projected by PED 56

Table - 6.31 Capital Expenditure and capitalization 57

Table – 6.32 Revised Capex and Capitalisation 58

6
Table – 6.33 Depreciation for the FY 2012-13 59

Table – 6.34 Details of loans and Interest 59

Table – 6.35 Interest on loans approved by the Commission 60

for FY 2012-13

Table – 6.36 Interest on working capital projected by PED 60

Table – 6.37 Interest on Working Capital approved for FY 2012-13 61

Table – 6.38 Aggregate Revenue Requirement projected by PED 63

and approved by the Commission for FY 2012-13

Table – 6.39 Revenue from Existing Tariff 63

Table – 6.40 Energy Sale for FY 2011-12(Provisional) 64

Table – 6.41 Energy Sale for FY 2012-13(Estimated) 64

Table – 6.42 Expected Revenue from existing tariff approved 65

Table – 6.43 Revenue gap with existing tariff projected by PED 65

Table – 6.44 Net Revenue gap in FY 2012-13 after subsidy 66

proposed by PED

Table – 6.45 Approved net Revenue gap 66

Table – 6.46 Net Revenue requirement and gap with revised tariffs for 67

FY 2012-13

Table – 9.1 Existing V/s Proposed Tariff 81

Table – 9.2 Category-wise Tariff approved by the Commission for 82

FY 2012-13

LIST OF ABBREVIATION

7
 Abbreviations Description
A&G Administrative and General
AAD Advance Against Depreciation
ARR Aggregate Revenue Requirement
CEA Central Electricity Authority
CERC Central Electricity Regulatory Commission
CWIP Capital Work in Progress
DPS Delayed Payment Surcharge
EA Electricity Act 2003
FSA Fuel Surcharge Adjustment
FY Financial Year
GFA Gross Fixed Assets
GOI Government of India
HEP Hydro Electric Project
HT High Tension
IEX Indian Energy Exchange
kV Kilovolt
kVa Kilovolt-ampere
Kw Kilowatt
kWh Kilowatt-hour
LT Low Tension
MDI Maximum Demand Indicators
MU Million Unit
NEEPCO North Eastern Electric Power Corporation
NHPC National Hydro Electric Power Corporation
NTI Non-Tariff Income
O&M Operations and Maintenance
PED Power & Electricity Department
PLF Plant Load Factor
PLR Prime Lending Rate
PPA Power Purchase Agreement
PWW Public Water Works
R&M Repair and Maintenance
RoE Return on Equity
T&D Transmission and Distribution
UI Unscheduled Interchange

Before

The Joint Electricity Regulatory Commission (JERC) for Manipur and

8
 Mizoram, Aizawl

Present

Mr. H. Bihari Singh, Chairperson

Petition No. 1 of 2012

In the matter of

Aggregate Revenue Requirement (ARR) and Retail Tariff for the State of
Mizoram for the FY 2012-13

AND In

the matter of

Power and Electricity Department

Government of Mizoram, Aizawl
Petitioner
(herein referred to as PED)

9
 ORDER

Date: 25th July, 2012

1. Introduction

10
1.1 JERC for Manipur and Mizoram (JERC, M&M)

In exercise of the powers conferred by the Electricity Act 2003, (hereinafter

referred to as Act) the Government of India constituted a Joint Electricity
Regulatory Commission for the States of Manipur and Mizoram to be known as
“Joint Electricity Regulatory Commission for Manipur and Mizoram” vide GOI.
Gazette (Extra Ordinary) Notification No.23/3/2002 R&R dated 18/01/2005,
(hereinafter referred to as Commission) as per the authorisation given by the
Government of Manipur and the Government of Mizoram vide Memorandum of

11
 Agreement dated 23/07/2004. The Commission constituted is a two-member
body designated to function as an autonomous authority responsible for
regulation of the power sector in the States of Manipur and Mizoram. The
powers and functions of the Commission are as prescribed in the Act. The
head office of the Commission is presently located at Aizawl, the capital town
of Mizoram. The Commission became functional w.e.f. 24th January, 2008.

1.1.1 In accordance with the provisions of the Act, the Joint Commission discharges
the following functions:

(a) determine the tariff for generation, supply, transmission and wheeling
of electricity, wholesale, bulk or retail, as the case may be, within the
State: Provided that where open access has been permitted to a
category of consumers under Section 42, the State Commission shall
determine only the wheeling charges and surcharge thereon, if
any, for the said category of consumers;

(b) regulate electricity purchase and procurement process of distribution

licensees including the price at which electricity shall be procured
from the generating companies or licensees or from other sources
through agreements for purchase of power for distribution and supply
within the State;

(c) facilitate intra-State transmission and wheeling of electricity;

(d) issue licenses to persons seeking to act as transmission

licensees, distribution licensees and electricity traders with
respect to their operations within the State;

(e) promote co-generation and generation of electricity from

renewable sources of energy by providing suitable measures for
connectivity with the grid and sale of electricity to any person, and
also specify, for purchase of electricity from such sources, a
percentage of the total consumption of electricity in the area of a
distribution licensee;

(f) adjudicate upon the disputes between the licensees and

generating companies; and to refer any dispute for arbitration;

(g) levy fee for the purposes of this Act;

(h) specify State Grid Code consistent with the Grid Code specified
under Clause (h) of sub-section(1) of Section 79;

12
 (i) specify or enforce standards with respect to quality, continuity
and reliability of service by licensees;

(j) fix the trading margin in the intra-State trading of electricity, if

considered, necessary;

(k) discharge such other functions as may be assigned to it under this Act.

1.1.2 Further, the Commission also advises the State Government on all or any of
the following matters namely:

(a) promotion of competition, efficiency and economy in activities of the

electricity industry;

(b) promotion of investment in electricity industry;

(c) reorganization and restructuring of electricity industry in the State;

(d) matters concerning generation, transmission, distribution and trading

of electricity or any other matter referred to the State Commission by
that Government.

1.1.3 The State Commission ensures transparency while exercising its powers
and discharging its functions.

1.1.4 In discharge of its functions, the State Commission is guided by the National
Tariff Policy (NTP) as brought out by GOI in compliance to Section 3 of the
Act. The objectives of the NTP are to:

(a) ensure availability of electricity to consumers at reasonable and

competitive rates;
(b) ensure financial viability of the sector and attract investments;

(c) promote transparency, consistency and predictability in regulatory

approaches across jurisdictions and minimize perceptions of
regulatory risks;

(d) promote competition, efficiency in operations and improvement in

quality of supply.

1.2 P & E Department (PED) and Tariff Petition

PED, being an integrated utility, is responsible for generation, transmission,

and distribution of electricity in the State of Mizoram and also trading functions
through its SLDC.
13
 As per the Tariff Regulations, the utility was required to submit the ARR and file
the Petition in the Month of November for fixing the Tariff for the next financial
year. Accordingly, the PED was asked to file the Tariff Petition for the year 2012-
13 at the right time. However, the Department filed Tariff Petition for the FY
2012-13 on 21/02/2012. In the petition PED estimated an ARR of Rs. 34410.39
lakhs and considered a tariff support of Rs.23479.10 lakhs as subsidy by the
State Government and worked out a net revenue gap of Rs.1017.43 Lakhs.

1.3 Admission of Petition and Public Hearing Process

The Commission observed that the ARR filed by the petitioner was incomplete
and lacking critical and vital information required as specified in Commission’s
Regulations on Terms and Conditions for Determination of Tariff.

PED was asked to submit the required information vide Commission’s letter
No. H. 200/4/12-JERC dt. 29.02.2012.

Pending receipt of additional information the ARR and Tariff Petition was
admitted on 12.4.2012 and marked as Petition No. 1of 2012 to avoid delay in
processing of ARR.

The Commission directed the PED to publish the summary of the ARR and
tariff proposal in the abridged form and manner as approved in accordance
with section 64 of the Electricity Act 2003 to ensure public participation.

The notification of the proposed ARR and the tariff schedule for FY 2012-13
was published by the PED in the following newspapers.

Sl.No. Name of the newspaper Language Date of publication

1 Zozam Times Mizo 28& 30.4.2012
2 News Link English 30.4.201& 1.5.2012

Through the public notice, the stakeholders/public were invited to furnish their
objections and suggestions on the petition on or before 07.05.2012

The Commission has not received any objection / suggestion on the petition
filed by PED.

Subsequently the PED was asked to submit additional information in addition

to the information called for, in the above reference, vide Commission’s
letters listed below:

1. No. H. 20011/4/12 – JERC dt 23.03.2012

2. No. H. 20011/4/12 – JERC dt 23.04.2012

14
 3. No. H. 20011/4/12 – JERC dt 23.04.2012

4. No. H. 20011/4/12 – JERC dt 14.05.2012

5. No. H. 20011/4/12 – JERC dt 15.05.2012

6. No. H. 20011/4/12 – JERC dt 15.05.2012

7. No. H. 20011/4/12 – JERC dt 20.05.2012

8. No. H. 20011/4/12 – JERC dt 25.05.2012

9. No. H. 20011/4/12 – JERC dt.05.06.2012

10. No. H. 20011/4/12 – JERC dt 28.06.2012

PED has submitted additional data / information / clarifications etc vide their
letters listed below:

1. T-23011/02/10-E-in-C (P)/Com/10 dt. 30.04.2012

2. T-23011/02/10-E-in-C (P)/Com/11 dt. 30.04.2012

3. T-23011/02/10-E-in-C (P)/Com/12 dt. 30.04.2012

4. T-23011/02/10-E-in-C (P)/Com/19 dt. 20.05.2012

5. T-23011/02/10-E-in-C (P)/Com/18 dt. 22.05.2012

6. T-23011/02/10-E-in-C (P)/Com/21 dt. 24.05.2012

7. T-23011/02/10-E-in-C (P)/Com/22 dt. 25.05.2012

8. B. 19018/9/2010-P&E dt. 08.06.2012

9. T-23011/11/EC(P)/Com/25 dt. 14.06.2012

10. T-11011/01/11-EC(P)/Com/27 dt. 02.07.2012

11. T-23011/02/11-EC(P)/Com/31 dt. 19.07.2012

1.4 Notices for Public Hearing:

A notification was published by the Commission in the following leading

newspapers for giving due intimation to all stakeholders, general public,
interested parties, and consumers about the public hearing to be held at Aizawl
on 3rd July 2012.

15
 Sl. No. Name of the News-paper Language Date of Publication
1 Vanglaini Mizo 21st and 25th June, 2012
2 Highlander English 21st and 22nd June, 2012

1.5 Public Hearing:

Public hearing was held as scheduled on 3rd July 2012 at the conference Hall
of I & PR Department, Aizawl. During the public hearing each objector was
provided a time slot for presenting his views on the petition of PED before
the Commission. The main issues raised by the objectors during the public
hearing along with response of PED are briefly reproduced in Chapter - 5.

1.6 Meeting of State Advisory Committee

The State Advisory Committee met on 28.05.2012 and discussed the ARR &
Tariff proposal for FY 2012-13 of PED, Mizoram. The minutes of the Advisory
Committee meeting are given in Annexure – III.

16
 2. Summary of ARR & Tariff Petition

2.1 Aggregate Revenue Requirement (ARR)

The Power and Electricity Department, Government of Mizoram in its petition

has submitted the Aggregate Revenue Requirement for the year 2012-13 for
meeting its expenses and the estimated revenue during the year with the
existing tariff. The ARR and revenue gap are shown in Table 2.1 below.

Table – 2.1: Aggregate Revenue Requirement for FY 2012-13

(Rs. in lakh)
Sl. No. Particular 2012-13
1 Fuel Cost 2.80
2 Power Purchase Cost 18568.01
3 Operation & Maintenance Expenses  
3.1 Employee Cost 8052.30
3.2 Repair & Maintenance Expenses 4311.40
3.3 Administration & General Expenses 475.70
4 Depreciation 2545.66
5 Interest & Finance Charges 136.68
6 Interest on Working Capital 386.08
7 Provision for bad debts 109.30
8 Sub Total 34590.39
9 Return on Equity -
10 Total Expenditure 34590.39
11 Less: Non Tariff Income 180.00
12 Aggregate Revenue Requirement 34410.39
13 Revenue from existing tariff 9913.86
14 Gap (12-13) 24496.53
15 Govt. subsidy 23479.10
16 Net gap 1017.43

PED has requested the Commission

(a) To condone the delay in filing Aggregate Revenue Requirement and

Tariff Petition for FY 2012-13.

(b) To approve the aggregate revenue requirement (ARR) for FY 2012-13.

(c) To determine the tariff for FY 2012-13 based on tariff proposed by the
PED for recovery of revenue gap.

(d) To approve capital expenditure as indicated in the petition.

(e) To create regulatory asset for any unmet gap remaining after tariff
17
 revision for FY 2012-13.

(f) To grant any other relief as the Commission may consider appropriate.
The petitioner craves leave of the Commission to allow further
submission, addition and alteration to this petition as may be necessary
from time to time.

(g) To pass such other order as the Commission may deem fit and
appropriate under the circumstances of the case and in the interest of
justice.

2.2 Tariff

The PED, Govt. of Mizoram in its petition has submitted the proposed tariff for
the FY 2012-13 as per the table 2.2 below:

Table 2.2 : Existing V/s. Proposed Tariff

Fixed Charges Energy Charges

Slab-wise
Category Existing Prop.r/ Con Existing Proposed
(in kWh)
r/Conn or kw r/kwh r/kwh
1 2 3 4 5 6
LT Consumers
Domestics (KJ) a) 1-15 10 10 0.90 1.00
b) 16-30 10 10 1.05 1.20
c) Above 30 10 10 1.50 1.70
Domestics (RES) a) 1-50 25 25 1.50 1.75
b) 51-100 25 25 1.85 2.10
c) 101-200 25 25 2.50 2.80
d) Above 200 25 25 3.50 3.90
COM a) 1-100 50 50 2.30 2.60
b) 101-200 50 50 3.60 4.00
c) Above 200 50 50 4.00 4.45
Public Lighting All Units 50 50 4.25 4.75
PWW All Units 50 50 4.00 4.40
Irrigation & Agri All Units 20 20 1.10 1.25
SI a) 1-400 50 50 3.00 3.50
b) Above 400 50 50 3.50 4.00
HT Consumers
Domestic All Units 30 30 3.00 3.30
Commercial All Units 60 60 3.80 4.20
PWW All Units 80 80 3.80 4.20
Irrigation & Agri All Units 30 30 1.10 1.25
Industrial All Units 80 80 3.00 3.30
Bulk Power All Units 80 80 3.00 3.30

18
 3. Power Sector in Mizoram

Power supply scenario in the State as per the tariff petition are as given below:

3.1 Geographical Reality

The PED is responsible for supply and distribution of electricity in the State of
Mizoram, which has a total area of 21087 Sq KM in its eight districts (Viz) Aizawl,
Mamit, Kolasib, Champhai, Serchhip, Lunglei, Lawngtlai and Saiha. The State
shares more than 700 Kms of international boundary with Bangladesh and
Myanmar. The total population of Mizoram State is 10.92 lakhs as per 2011
census. The per capita consumption is 219 kWh as on 31/03/2011. PED serves
about 1.78 lakh consumers of various categories at the end of March, 2012.

3.2 Power supply

3.2.1 Local Generation

PED has Generation from its own generating plants, for the year 2011-12. The
total installed capacity of the State owned generating stations and the actual
energy generation during 2010-11 are as detailed in Table 3.1 below:

Table-3.1: Local Generation

Gross Generation
Installed Capacity (MU)
Sl. No. Station
(MW)
2010-11 (A) 2011-12 (P)
I Hydel 29.35    
1 Serlui 'A' 1.00 0.63 0.61
2 Tuirivang 0.30 Damaged Damaged
3 Khawiva 1.05 1.30 1.60
4 Tuipui 0.50 1.52 1.20
5 Maicham-I 2.00 4.65 3.00
6 Teirei 3.00 1.93 2.08
7 Tuipanglui 3.00 2.08 1.50
8 Kau-Tlabung 3.00 3.74 6.10
9 Lamsial 0.50 0.15 0.24
10 Maicham-II 3.00 0.62 2.00
11 Serlui 'B' 12.00 15.3 0.00
II Diesel      
1 Lengpui 0.50 0.01 0.02
III HFO      
1 Bairabi 22.92 1.72 0.00
Total 52.77 33.65 18.35

19
 PED stated that out of its own generation plants of 52.77 MW the diesel
generating set of 0.50 MW is for Lengpui Airport and the heavy fuel plant of 22.92
MW at Bairabi is kept on standby mode for the purpose of meeting the emergency
requirements. The rest are mini Hydel plants having seasonal generation.

3.2.2 Power Purchase

The State is dependent on outside sources for meeting its energy requirement.
The State has share from Central Sector Generating Stations and total firm share
from the Central Sector Generating Stations of NEEPCO, NHPC and NTPC is
73.48 MW. Apart from this PED is also getting power to a tune of 10.5 MW from
NEC funded Baramura gas based thermal power plant and 22 MW from Palatana
gas based power plant in Tripura state. Therefore the total allocation to Mizoram
from its share of power from the generating stations outside the State is 106.00
MW as depicted in the Table 3.2 below:

Table-3.2: Share from Central Generating Stations (CGS)

Share from firm

Sl.
Name of the station allocation MW
No.
(%)
A. Central Sector
1 Koppili I HEP (200MW) 4.618 9.24
2 Koppili II HEP (25MW) 6.278 1.57
3 Khandong HEP (50MW) 3.940 1.97
4 Ranganadi HEP (405MW) 5.710 23.13
5 Doyang HEP (75MW) 5.240 3.93
6 Assam gas based projects (291MW) 5.428 15.80
7 Agartala gas based project (84MW) 6.190 5.20
8 Loktak HEP(105MW) 5.068 5.32
9 Farakka STPP (1600 MW) 0.214 3.42
10 Kahalgaon STPP I (840 MW) 0.210 1.76
11 Talcher STPP I (1000 MW) 0.214 2.14
  Total (CS) (4675 MW) 1.560 73.48
B. State Sector
12 Baramura GTP IV & V (42 MW) 25.000 10.50
C. Joint Sector
13 Palatana   22.00
  G. Total (4702 MW) 26.560 105.98
(Table 1.2 of Petition) say 106.00 MW

The energy drawn from various central generating stations and Tripura during
2009-10 and 2010-11 and estimated drawal for 2011-12 are given in Table 3.3
below:

20
 Table – 3.3: Energy drawal trend from sources outside the State

Sl. Station Energy Drawl (In MU)

No. FY FY FY
2009-10 2010-11 2011-12
Actual Actual Provisional
A Central Sector 242.84 272.34 272.34
Hydro
1 Kopill - I HEP (200 MW) 32.21 32.06 32.06
2 Kopili - II HEP (200 MW) 4.91 5.02 5.02
3 Khandoni HEP (50MW) 5.90 6.20 - .
4 Ranga nadi H EP (405MW) 58.19 79.93 79.93
5 Doyang HEP (75MW) 9.03 12.84 12.84
Total Hydro 110.24 136.05 136.05
Gas Based
6 Assam Gas based Power 92.81 97.60 97.60
7 Agartala Gas Turbine Power 39.79 38.69 38.69
Total Gas Based 132.60 136.29 136.29
Loktak HEP (105 MW) 25.66 29.93 30.00
Eastern Power (NTPC)
8 Fakakka STPP 0.00 19.20
9 KahaIgaon STPP-I 0.00 12.00
10 TaIcher STPP-I 0.00 16.80
Total Eastern Power 0.00 0.00 48.00
B Tripura - Baramura
11 Tripura - Baramura 41.08 45.98 79.00
Total - B 41.08 45.98 79.00
Total (A+B) 309.58 348.25 429.34

(Ref: Table 2-8 of Tariff Petition)

3.3 Transmission and distribution

For drawing power from CGS and other outside sources, there are 3 (three) Nos.
of 132kV transmission lines owned by PGCIL connecting Mizoram as given
below.
(a) 132kV S/C Jiribam (Manipur) – Aizawl
(b) 132kV S/C Badarpur (Assam) – Aizawl
(c) 132kV S/C Kumarghat (Tripura) – Aizawl

All these lines terminate at 132KV Luangmual SS, Aizawl under PGCIL, from
where power is drawn to different load centers through 2 (two) No. 132 kV lines
of PED.

Being a hilly State with its population unevenly dispersed to the remote
areas, the State of Mizoram is having large network of HT and LT lines as well
as distribution transformers.

The details of transmission and distribution network, owned & operated by

PED as on 31/03/2010 are given in Table 3.4 below:

21
 Table – 3.4: Transmission and Distribution Network
Transmission lines Substations
Sl. No. Voltage
(cKt KM) (Nos.)
1 132kV 638.37 7
2 66kV 117.00  
3 33kV 828.03 39
4 11kV lines 4292.41  
5 LT lines 2251.97  
6 Power transformers   70
7 Distribution transformers   1245

3.4 Transmission and distribution (T&D) losses

The transmission and distribution losses of PED system were given as
33.39% during the year 2010-11 and as 27.16% during the year 2011-12
including external pool losses. The technical and commercial losses are not
segregated.

3.5 Consumer profile and Energy sales

The consumers profile and corresponding energy sales during the year 2011-12
are given in Table 3.5 below.

Table – 3.5: Consumer Profile and Energy Sales – 2011-12

No. of Energy
Sl. No. Consumer category (%) (%)
consumers sales (MU)
1 Kutir Jyothi (Domestic) 14047 7.89 3.394 1.34
2 Domestic (LT+ HT) 157307 88.40 167.522 66.9
3 Commercial (HT + LT) 4950 2.78 18.888 7.54
4 Public lighting 763 0.04 6.044 2.41
5 Irrigation & Agri (LT + HT) 16 0.01 0.095 0.01
Public Water Works
6 38 0.02 36.283 14.49
(LT + HT)
7 Industrial (LT) 599 0.03 0.554 0.02
8 Industrial (HT) 11 0.01 0.329 0.01
9 Bulk supply (HT) 213 0.01 17.312 6.91
  Total 177944   250.421  

3.6 Demand
The restricted peak power demand of PED during FY 2010-11 was 75MW. During
FY 2012-13 with seasonal and peak period restrictions the demand is expected to
be around 107 MW. The allocation (firm and infirm) from various central
generating stations and NEC funded Baramura Gas Based Thermal Power Plant
is, 105.98 MW. The short fall is partly met by procuring power from Power
exchanges and through unscheduled interchange.

22
 The energy requirement estimated by PED for the year 2011-12 was 447.69
(Power purchase 429.34 MU + own generation 18.35 MU).

3.7 Energy Audit

PED is not conducting Energy Audit effectively- neither at the state level nor at the
consumer end. At present, the PED does the calculation of loss by taking the
energy input at 132kV and energy sales at consumer end and the difference is
shown as distribution loss, which cannot be termed as energy audit. As a matter of
fact, energy audit should be conducted Voltage wise and computed with standard
norms. Any high loss areas should be identified and analysed and effective
measures to be taken to bring down the losses to the permissible limits. To
achieve this all the line feeders, transformers and consumers should be provided
with standard meters.

3.8 Energy Metering

PED has completed 97% consumers metering. Most of the meters are static
type. These are not tested for many years. No MDI meters are provided.
Metering of 33KV, 11KV feeders and DTs are not completed.

3.9 Continuity of Power Supply

All the District Head Quarters are given a continuous power supply. In remote
areas and outskirts of the District Headquarters of the State, there are load
sheddings during dry season.

3.10 Financial Position

Statement of Income & Expenditure for FY 2010-11

Expenditure Rs. Lakh Income Rs. Lakh

Fuel Cost 28.73 Revenue from operations 7944.00
Power Purchase Cost 7217.00 Other Income 162.00
O&M Expenses 7544.54 Subsidy from Government of Mizoram 9175.04
Depreciation 1679.00    
Int & Finance 667.00    
Interest on working capital 144.77    
Total 17281.04 Total 17281.04

23
 4. Review of ARR of 2010-11

4.1 Back ground

4.1.1 The Commission had issued First Tariff Order for the FY 2010-11 based on the
petition filed by PED Mizoram in September 2010. PED had estimated an ARR of
Rs. 19695 lakhs considering tariff support of Rs. 11762 lakhs from the
Government of Mizoram.

The expected revenue with the existing tariff was estimated at Rs. 6431 lakhs by
PED. The Petition was with a number of data gaps.

4.1.2 The ARR & Tariff petition for FY 2010-11 was analysed and Tariff Order was
issued with the data made available. The Commission has now considered to
review the performance of the PED based on actuals for FY 2010-11. The true-up
could not be done in the absence of Audited accounts for the year.

4.2 Energy sales Analysis

The PED has reported the actual energy sales at 237.56 MU as against 230.34
MU approved by the Commission for the FY 2010-11. The Category wise actual
sales during the FY 2010-11as reported vide Table 2.1 of the Petition for FY 2012-
13 is analysed here under:

4.2.1 Kutir Jyoti

PED has not segregated the sales of Kutir Jyoti from the Domestic Category in the
projections. But the reported actuals for FY 2010-11 at 6.50 MU are considered for
review.

4.2.2 Domestic (including Kutir Jyoti)

The Commission approved sales for Domestic Category at 155.45 MU for

FY 2010-11 against which; PED has reported actual sales at 174.40 MU. This
accounts to about 12% increase over approved sales.

The Commission considers the Domestic sales at 174.40 MU for the

FY 2010-11.

24
4.2.3 Commercial
The PED reported actual sales of this category at 14.65 MU against 16.38 MU
approved for the FY 2010-11. The actual sales are lower than what is approved by
the Commission.

The Commission considers the sales of Commercial Category at 14.65 MU

for the FY 2010-11.

4.2.4 Public Lighting

The Commission had approved the sales at 8.0 MU considering that there is no
definite trend in the consumption for the previous six years. The actual sales
reported for the year FY 2010-11 are 7.04 MU. The PED has not stated reasons
for negative growth for FY 2010-11. PED shall ensure building up of the sales
database with reference to fixtures in use and assess accurate sales, since this
category has a definite upward growth as a public facility.

The Commission however considers the sales of this category at 7.04 MU

(Actuals) for FY 2010-11 as reported at Table 2.1 of the Petition.

4.2.5 Irrigation & Agriculture (HT & LT)

The Commission had approved 0.001 MU for the FY 2010-11 in the Tariff Order
as against which the actual sales are 0.121 MU.

The Commission considers 0.121 MU sales for Irrigation & Agriculture

category for FY 2010-11.

4.2.6 Public Water Works

The Commission has approved 35.18 MU as projected by PED for the FY 2010-11.

PED reported actual sales of this category at 27.29 MU for FY 2010-11, which is
22.43% less than the approved levels. Sale to the unmetered categories of
consumers is very low. The PED shall analyse the unmetered sales properly while
replacing the defective meters to ensure maximum sales to be brought to
assessment, and revenue billing.

The Commission considers sales of this category at 27.29 for FY 2010-11.

25
4.2.7 LT Industrial
The PED has not provided the breakup data of HT & LT Industrial sales.
Commission had approved 2.64 MU sales as projected by PED.

The actual sales of the LT Industry is reported at 1.57 MU and HT Industry at 0.31
MU for the FY 2010-11, in total is 1.88 MU. The sales to LT & HT industry are
lower than the approved sales.

The Commission considers sales of both LT & HT Industries at 1.88 MU for

the FY 2010-11.

4.2.8 Bulk Supply

The Commission had approved sales at 12.69 MU for this category considering
5% growth over the actual sale of FY 2009-10.

The PED has reported 12.18 MU sales for this category, which is in declining trend
compared with the number of consumers and connected load profile over the
years from 2004-05 to 2009-10. This requires to be checked up.

The Commission considers the sales at 12.18 MU as reported for the

FY 2010-11.

4.2.9 Summary of the sales achievement against the approved sales for the
FY 2010-11

Energy Sales for FY 2010-11

Approved by Considered in the
Projected by PED
Sr. the review based on
Category (FY 2010-11)
No. Commission actuals
(MU)
(MU) (MU)
1 (a) Kutir Jyothi -- -- 6.50
(b) Domestic 143.75 155.450 167.90
2 Commercial 15.69 16.380 14.65
3 Public lighting 4.95 8.000 7.04
4 Irrigation & Agriculture 0.00 0.001 0.121
5 Public Water Works 35.18 35.180 27.29
LT Industrial 1.88
6 2.64 2.640
(HT Industrial) (LT & HT)
7 Bulk Supply 12.62 12.690 12.18
Total 214.83 230.341 237.56

The overall performance in the sales of the PED is found to be satisfactory, while
the achievements are lower, compared to approved sales in the categories of
commercial, public water works, LT Industrial and Bulk Supply.

26
4.3 T & D Loss

T&D losses approved by the Commission in the Tariff Order and actuals for
FY 2010-11 are as below:

Sr. Approved by the Actuals for

No. Commission FY 2010-11
1 Energy Sales (MU) 230.34 237.56
2 T&D loss including external loss 124.00 (35%) 152.04(39.02%)
3 Energy requirement by the state (MU) 354.34 389.60

4.4 Energy Requirement & Energy Balance

Energy Requirement and Availability for FY 2010-11

Approved by Considered in
Sr. Actuals for
Particulars Units the review for
No. FY 2010-11
Commission FY 2010-11
1 Energy Sales MU 230.34 237.56 237.56
2 Distribution Loss MU 124.00 152.04 152.04
3 Distribution Loss % 35.00 39.02 39.02
4 Energy Requirement at State periphery MU 354.00 389.60 389.60
  Energy availability        
5 Own generation MU 43.00 33.66 33.66
6 Power purchase MU 355.00 348.25 348.25
7 Less Pool Loss MU 12.00  12.19  12.19
8 Pool Loss % 3.50  3.50  3.5
9 Net trading / UI ( ± ) MU - 32.00  + 19.88 + 19.88
Energy availability
10 MU 354.34 389.60 389.60
(5+6-7+9)

The Commission approved for purchase of 38 MU and sale of 70MU through

trading / UI mechanism.

4.5 Own Generation

PED has projected 22.59 MU own generation for the FY 2010-11. But the
Commission approved 43.30 MU as given in Table 5.12 of the Tariff Order. The
actuals now furnished by PED at 33.66 MU for less than the generation approved
by the Commission due to unprecedented shutdown of Serlui – B.

4.6 Purchase of Power

PED projected purchase of 392.95 MU, the procurement includes 37.57 MU UI
purchase.

The Commission after detailed analysis approved purchase of 392.95 MU

including UI purchase of 37.57 MU.

27
 PED Mizoram has reported vide table 2.8 of Tariff petition for FY 2012-13 that
348.25 MU of power was purchased from sources outside the state (CGS) during
FY 2010-11.

Summing up the gross procurement of Power from the sources out side the state,
and UI purchase based on actuals as detailed below:
(in MU)
Considered in
Sr. Projected Approved by the
Stations Review based
No. by PED Commission
on actuals
NEEPCO
1 Koppili I 41.14 41.14 32.06
2 Koppili II 4.96 4.96 5.02
3 Khandong 7.43 7.43 6.20
4 Ranganadi 89.69 89.69 79.93
5 Doyang 11.95 11.95 12.84
Gas Based
6 Assam Gas based 93.68 93.68 97.60
7 Agartala Gas Turbine 39.79 39.79 38.69
NHPC
8 NHPC loktak 25.66 25.66 29.93
9 Baramura – Tripura 41.08 41.08 45.98
Sub-total 355.38 355.38 348.25
10 UI Purchase 37.57 37.57 19.88
Grand Total 392.95 392.95 368.13

4.7 Annual Revenue Requirement

4.7.1 Fuel Cost:

PED projected 3.30 MU own generation with a Fuel Cost of Rs. 348 lakhs during
the FY 2010-11 for Lengpui Airport and HFO power plant Bairabi. Commission
desired that the Generation of the above stations be increased to 6.0 MU in order
to meet peak period requirement and to minimize the load shedding, and
correspondingly the Fuel Cost has been approved at Rs. 640 lakhs.

PED had achieved generation of 1.71 MU (Net) only from these plants at a Fuel
Cost of Rs. 28.73 lakhs during the FY 2010-11, as reported in the ARR Format – 2
of tariff Petition for FY 2012-13.

The Commission accordingly considers Fuel Cost at Rs. 28.73 lakhs for the
generation of 1.71 MU during the FY 2010-11.

4.7.2 Power Purchase Cost:

28
 Power purchase cost approved by the Commission was Rs. 8144.00 lakhs for
purchase of 392.95 MU. PED submitted the power purchase details vide their
letter dated 14.6.2012. It includes an amount of Rs. 55.58 lakhs towards O&M
expenses of local generation. The reason for excessive increase in power
purchase cost has been identified as revision of tariff with retrospective effect and
payment of arrears. The Commission considered the power purchase cost with the
O&M expenses as under. It includes Transmission and ULDC charges and
arrears.

Power Purchase Cost:

Actuals considered
Projected Approved
in the review
Sr.
Cost Cost Cost
No.
MU (Rs. in MU (Rs. in MU (Rs. in
Lakhs) Lakhs) Lakhs)
Cost of Power
1 purchase as per the
Tariff Order FY 392.95 8214.36 392.95 8144.00 368.13 10115.66
2010-11
(Table 5.24)

Accordingly, the Cost of Power purchase of 368.13 MU at Rs. 10115.66 lakhs

for FY 2010-11 against Rs. 8144 lakhs approved for Purchase of 392.95 MU.

4.7.3 O & M Expenses

a) Employee Cost
The Commission had approved Rs. 7656 lakhs for the year 2010-11 to meet the
employee expenses of PED Mizoram.

PED has reported the employee expenses at Rs. 6168.45 lakhs for FY 2010-11 in
its ARR and Tariff petition for the FY 2012-13, which is 19.43% less than the
approved expenses. It is observed that the shortfall is because of nonpayment of
revised pay.

The Commission considers employee expenses at Rs. 6168.45 lakhs for the
FY 2010-11.

b) Repairs & Maintenance

The Commission had approved R&M expenses at Rs. 1011 lakhs as projected by
the PED Mizoram for FY 2010-11. PED has now reported the R&M expenses at
Rs. 4233 lakhs for the FY 2010-11 in its ARR petition for FY 2012-13. The utility
has not furnished the details of expenses, asset wise breakup such as spares,

29
 consumables and service expenses etc., giving the volume of the network to be
maintained.
The Commission considers the actual R&M cost is very high.

The PED may submit the details of asset wise expense towards spares,
consumables and service expenses with volume of network to be maintained for
consideration by the Commission in the True up for FY 2010-11.

The Commission considers the R&M expenses at Rs. 1011 lakhs for the FY
2010-11.

c) Administration & General Expenses

The Commission had approved Rs. 435 lakhs for the FY 2010-11 as projected by
the PED Mizoram. PED has reported the Administration and General expenses at
Rs. 411.09 lakhs in its ARR and tariff petition for FY 2012-13. The details of the
expenses include Rs. 46 lakhs as Grant in Aid which shall not come under this
head. On further querry, it is stated that this amount is required for capacity
building of the Officers of PED.

Hence, the Commission considers Administration and General expenses at

Rs. 411.09 lakhs for the FY 2010-11.

4.7.4 Depreciation
The Commission had approved depreciation at Rs. 1679 lakhs for the FY 2010-11
considering the Gross Fixed Assets in use at Rs. 47063 lakhs as on 01.04.2007
and validating as on 01.04.2010. The Commission also held that the value of the
assets was arrived by the PED with certain assumptions.

PED Mizoram has claimed depreciation at Rs.1744 lakhs for FY 2010-11 in its
ARR petition for FY 2012-13. The Commission directed the PED to prepare and
maintain Assets Registers, Historical data of depreciation in the prescribed ARR
Format and to submit audited Accounts statements for consideration of the
Depreciation in the tariff determination. The PED has not submitted any such
financial statements and audited Accounts in support of the claim for Rs. 1744
lakhs.

The Commission considers depreciation of Rs. 1679 lakhs for the FY 2010-11
in the review of performance as approved in the tariff orders for FY 2010-11.

30
4.7.5 Interest & Finance Charges
The Commission had approved Rs. 1918 lakhs for the FY 2010-11 as projected by
the PED, Mizoram.

PED has reported in its ARR and tariff petition for FY 2012-13 the Interest &
Finance charges at Rs. 1801 lakhs for FY 2010-11, which is found to be erroneous
calculation as shown below: (ARR Format – 15)

Details of Loan schedule for FY 2010-11 (Projected)

Sr. Particulars Opening Rate of Addition Repayment Closing Amount
No. Balance Interest during during Balance of
FY 2011-12 FY 2011-12 Interest
1 2 3 4 5 6 7 8
1 LIC Loans 1,534 8.0% 133 1,401 123
2 REC 6,824 8.5% 1,604 2,316 6,112 1,678
Loans
Total 8,358 1,604 2,449 7,513 1,801

The correct calculation is worked out below:

Details of Loan schedule for FY 2010-11 (Considered)

Sr. Particulars Opening Rate of Addition Repayment Closing Amount
No. Balance Interest during during Balance of
FY 2011-12 FY 2011-12 Interest
1 2 3 4 5 6 7 8
1 LIC Loans 1,534 8.0% 133 1,401 117
2 REC 6,824 8.5% 1,604 2,316 6,112 550
Loans
Total 8,358 1,604 2,449 7,513 667

The Commission considers Interest & Finance charges at Rs. 667 lakhs for
the FY 2010-11, as per the loan schedule.

4.7.6 Interest on Working Capital

The Commission had approved Rs. 175 lakhs, as interest on Working capital as
per the JERC Regulation 98 (6) (b) as against the PED claim for Rs. 161 lakhs.

PED has claimed Rs. 177.88 lakhs vide Table 2.16 of tariff petition for 2012-13,
and Rs. 185.45 lakhs vide ARR Format – 33 of the petition considering the interest
at an interest rate of 11.75% in Table 2.16 and interest rate of 12 % in the Format
– 33.

The Commission considers the Interest on Working Capital at Rs. 173.65

lakh as per the JERC Regulation 98 (6) (b) and based on the expenses
considered in the review process, as stated below:

31
 Interest on Working Capital
(Rs. in Lakhs)
Sr. Approved by Claimed by Considered by
No. Commission PED Commission
1 Fuel Cost for one month 53.00 2.39 2.39
2 Power purchase cost 1 month 679.00 610.42 842.97
3 O&M expenses for 1 month 759.00 901.05 632.54
Total 1491.00 1513.86 1477.90
4 Interest at 11.75% 175.00 185.45 173.65

4.7.7 Provision for Bad Debts

The Commission had not considered any Provision for Bad and Doubtful
Debts for the FY 2010-11, since PED has not submitted any data of
receivables.

4.7.8 Return on Equity

Commission had not considered any Return on Equity Capital for the FY
2010-11 as the PED is functioning as Government Department.

4.7.9 Non Tariff Income

The Commission had approved Rs. 167 lakhs as Non-tariff Income for the
FY 2010-11.

PED has reported the Non tariff Income at Rs. 162 lakhs for the FY 2010-11 vide
ARR Format – 20.

The Commission considers Rs. 162 lakhs as Non tariff Income for the
FY 2010-11.

4.8 Revenue from approved tariffs

The Commission had approved Revenue from tariff rates at Rs. 6870 lakhs for
approved sales of 230.34 MU for the FY 2010-11.

The PED has reported the sales at 237.56 MU, but Revenue receipt is shown as
Rs. 5553 lakhs as at ARR format – 27, which is not commensurate with the
approved tariff rates, and sales achieved during FY 2010-11. This requires to be
investigated by PED to ascertain actual revenue realization.
The table below indicates the revenue from sale of power as per the tariffs

Sr. Amount in
Particulars MU
No. lakhs
Revenue from Sale of Power with existing
1 230.34 6870.00
approved tariffs for FY 2010-11
Revenue realised with approved tariffs on the
2 237.56 5553.00
sales achieved for FY 2010-11

32
 The Commission however, considers the sales revenue receipts at Rs.
5553.00 lakhs for the 237.56 MU sales as reported based on the approved
tariff rates for the FY 2010-11. The revenue appears to be low.

PED shall investigate for such low realization of revenue with revised tariffs and
report to the Commission.

4.8.1 Summary of ARR after review with actuals and approvals

Sr. No. ARR Elements ARR Approved Actuals

1 Fuel Cost 640.00 28.73
Power Purchase Cost including UI
2 8144.00 10115.66
purchase
3 Employees Cost 7656.00 6168.45
4 Repairs and Maintenance Exp 1011.00 1011.00
5 Adm. & Gen Exp 435.00 411.09
6 Depreciation 1679.00 1679.00
7 Int. & Fin charges 1918.00 667.00
8 Int. on Working Capital 175.00 173.65
9 Prov. for Bad Debts -- --
10 Return on Equity -- --
11 Sub-Total 21658.00 20254.58
12 Less: Non-Tariff Income 167.00 162.00
13 Total Expenditure 21491.00 20092.58
Revenue from existing tariff
14 7601.21 5553.00
(Excl UI sale)
15 Revenue Gap 13889.79 14539.58
16 Less: UI Sales Rev 2377.00 0
17 Gap before subsidy 11512.79 14539.58
18 Govt. Subsidy 11500.00 11762.00
19 Net Gap/Surplus (-) 12.79 2777.58
20 Sales (MU) 230.34 237.56
21 UI Sales/purchase (MU) 70.00
22 Net Surplus (-) / Gap   2777.58

4.8.2 Revenue Gap / Surplus for FY 2010-11

(Rs. in lakhs)
As Approved As Achieved
Net ARR 21491 20092.58
Revenue from sale of Power 9978.21 5553.00
including UI sales
Gap before subsidy 11512.79 14539.58
Govt Subsidy 11500 11762.00
Net Gap to be addressed 12.79 2777.58

The net gap approved was to be met by improving the efficiency of the PED. The
actual gap during the year is Rs. 27.7 crores which can not be filled up by
efficiency improvement. The State Govt. is to bear the gap by way of increasing

33
 the subsidy from the commitment of Rs. 117.6 crore to Rs. 145.4 crore. Carrying
forward to the next ARR will become a heavy burden to the consumers.

5. Proceedings of Public Hearing

5.1 Public Response to the Petition

34
 On admitting the ARR and Tariff Petition for 2012-13, the Commission directed the
PED to make available copies of the petition to the general public, post the petition
on their website and also publish the same in newspapers in abridged form and
invite comments / objections from them.

No written objection was received from any consumer / stake holders during the
time period fixed by the Commission.

5.2 Public Hearing

In order to ensure transparency in the process of determination of tariff as

envisaged in the Electricity Act, 2003, public hearing was held at Aizawl on
03/07/2012 as scheduled.

During the public hearing, the participants from the general public, who did not
submit written objections earlier, were also given an opportunity to offer their views
in respect of the ARR and Tariff proposal of the PED. The list of stakeholders who
attended the public hearing is given in Annexure- IV. The officers of the PED, who
were present during the public hearing, responded to the issues raised by the
objectors.

5.3 Objections / Suggestions

5.3.1 Objector – 1: Mr. Rodinmawia, Dove Alliance, Aizawl

Objections:

(i) Some energy meters are found to be recording error reading as indicators
are not giving light signals regularly.

(ii) Amount after due date stipulated in the bill body is meaningless because
the bill payment is not allowed by the PED after due date. It only creates
confusion and it may be removed.

5.3.2 Objector – 2: Pu Lalupa, President, Mizoram Consumers’ Union, Aizawl.

Objection:

35
 (i) The previous Tariff hike was reported to be 10.73%. However, there was
steep hike to the tune of more than 20% on implementation. Such
precedence should not be repeated.

(ii) A complaint of energy bills submitted to the Commission was not paid
attention. No response is received till date,

(iii) Single rate pattern practiced in Telecommunication in Telephone bill

should be applied in Electricity Tariff also.

(iv) The PED should be corporatized as demanded by the Electricity Act, 2003
and the PED should take necessary action.

(v) Govt. of Tripura did not have problem to corporatise its Electricity
Department. PED has not been corporatised even after five years since
corporatisation of Electricity Department in Tripura. The PED here said that
fund constrain is the reason for non-corpratisation which is required to be
clarified.

5.3.3 Objector – 3: Mr. Lalramhluna, Vanapa Society, Aizawl.

Objections:

The consumers burden on their high Electricity charges would be relieved if the
existing slabs are made into different smaller slabs. It is opined that billing
programme software modification will not be problem for the PED if consumers
burden are taken into consideration.

5.3.4 Objector – 4: Mr. H. Zonuntluanga, Dove Alliance, Aizawl..

Objections:

(i) Report of damage of software of computer billing has been frequently

received. If such system still prevails, it may result in steep hike of bill
which is not welcome.

(ii) The increase in Tariff hike should be as less as possible

5.3.5 Objector – 5: Mr. Laldingliana Sailo, Secretary, Mizoram Consumers’ Union,

Aizawl.

Objections:

36
 (i) The reason of revision of Tariff is to make the PED self-sustainable. This
revision of Tariff inter-alia reflects the poor administrative set up especially
towards engagement of manpower. Tariff revision is not justified if the
existing uncontrolled expenditure and rampant theft cases continues.

(ii). The Govt. of Mizoram can be able to corporatise the PED if other States
Govt. also can do, why not?

(iii) The ARR is very high and in the meantime theft cases increases resulting
in frequent load shedding which may be clarified.
The Consumer Union opines that Tariff should not be revised until and
unless the PED is corporatised. The revision is unreasonable.

5.4 Response of PED

5.4.1. On objector – 1

(i) Energy meters are procured from different manufactures. The frequency of
the light signals given by the indicators are also different from one to
another based on the manufacturing design. Consumers doubtful of energy
meter reading with respect to their consumption may approach concerned
official for testing its correctness.

(ii) The consumers are supposed to make payment of energy bills within due
date. Otherwise, they have to make payment of the gross total bill with late
payment surcharge @ 2% of the gross total when the next month bill is
served.

5.4.2. On objector – 2

(i) There was a steep hike in energy bills for some consumers at the existing
revised tariff from previous one due to methodical change from telescopic
to non-telescopic pattern. Such precedence will not take place in this
proposed tariff revision.

(ii) The complaint submitted by the MCU received by the PED from the
Commission was sent to the Officers concerned for their examination and
detailed reports from the officers are yet to be received for submission to
the Commission.

37
 (iii) Single rate pattern is not followed in Electricity Tariff all over India. Different
categories of Consumers have different types of tariff and this method is
proposed to be applied in Mizoram also.

(iv)&(v) In connection with restructuring and corporatization of the PED,

Administrative Staff Collage of India (ASCI), Hyderabad was appointed as
consultant and they had submitted the report to the State Government
which has been under examination by the State Government. This matter
is to be decided by the State Government as it involves huge amount of
expenditure.

5.4.3. On Objector – 3.

Software modification usually takes long time as being observed by the PED. The
PED proposes overall average increase of 10.16% only in the proposed tariff to
avoid burden on the consumers due to tariff hike.

5.4.4. On Objector – 4

(i) It is observed that the present computerisation of billing has been found
reliable and the PED has been trying its best effort to avoid erroneous
energy bills.

(ii) Tariff hike proposed by the PED is very low in comparison to increase in
price of various commodities and materials.

5.4.5. On Objector – 5.

(i) Tariff revision is not because of poor administration. Efforts are being
made by the PED to identify the un-metered consumption and
unauthorized services. Checking of pilferage of energy has been done on a
regular basis. The existing employee cost can not be reduced immediately
at the Department level so as not to revise tariff.

(ii) The issue of corporatization of the PED is to be decided by the State

Government and not by the PED.

(iii) The cost of purchase of power from outside the state has been revised by
the CERC from time to time resulting in high increase of payable bill
amount. It is uncontrollable item. Salaries of employees also go on

38
 increasing. These factors are attributing high increase in the ARR. It is
observed that the existing frequent load shedding are mainly due to non-
availability of adequate generation from various sources to cater the
demands and outages of lines through difficult hilly terrains.

(iv) In line with the Electricity Act, 2003, the PED is bound to abide by the
various Regulations made by the JERC for Manipur & Mizoram. As per the
JERC for M&M (Terms and Conditions for Determination of Tariff)
Regulations, 2010, the PED is to file with the Commission Tariff Petitions
every year. The revision of tariff has no linkage with whether or not the
PED is corporatized. The annual revision is rather necessary to meet the
ARR to avoid tariff shock on the consumers. Tariff shock can be avoided
this time also due to the State government commitment to subsidize the
tariff. The Commission, therefore, may kindly revised the existing tariff as
proposed by the PED.

5.5 Commission’s observations

The Commission has taken careful note of the objections, comments and
suggestions made by the stakeholders / members, general public and response
from PED and has given due importance to the same while doing the analysis and
finalizing different components of ARR and tariff proposal. Keeping in view the
remarks / suggestions made by the objectors and also to meet some of the
requirements of Electricity Act, 2003, National Electricity Policy and National Tariff
Policy, the Commission has also given certain directives to the Department as an
integral part of this order.

6. Analysis of Annual Revenue Requirement for FY 2012-13

39
6.1 Energy Sales

Proper estimation of category wise energy sales is essential to determine the

quantum of power purchase and the likely assessment of revenue. This section
examines in detail the customer category wise sales projected by the Power &
Electricity Department (PED) in their petition for assessment of ARR.

6.2 Consumer Categories

PED serves about Rs. 2.00 lakhs consumers in their licensed area and the
consumers are categorized as under.

1. (a) Kutir Jyothi

(b) Domestic LT
(c) Domestic HT

2. (a) Commercial LT
(b) Commercial HT

3. Public Lighting

4. (a) Irrigation & Agricultural LT

(b) Irrigation & Agricultural HT

5. (a) Public Water Works LT

(b) Public Water Works HT

6. (a) Industrial LT
(b) Industrial HT

7. Bulk Supply HT

PED serves the consumers at different voltages at which the consumers avail
supply. In all categories there are LT consumers as well as HT consumers
except in the categories of Kutir Jyoti and Public Lighting. In all categories,
metered and un-metered services are existing. The Commission has considered
to retain the same categories as are existing.

6.3 Additional information and Data

The ARR and Tariff Petition for the year 2012-13 filed by PED was incomplete,
as many of the specified formats required under JERC (Terms and Conditions for

40
 Determination of Tariff) Regulations, 2010 were not submitted. PED have
submitted some additional data / information / clarifications etc through the
following references.

1. PED letter No. T 23011/02 – E-in-C(P) Com / 10 dt. 30.04.2012

2. PED letter No. T 23011/02 – E-in-C(P) Com / 11 dt.30.04.2012

3. PED letter No. T 23011/02 – E-in-C(P) Com / 12 dt. 30.04.2012

4. PED letter No. T-23011/02/10-E-in-C (P)/Com/19 dt. 20.05.2012

5. PED letter No. T-23011/02/10-E-in-C (P)/Com/18 dt. 22.05.2012

6. PED letter No. T-23011/02/10-E-in-C (P)/Com/21 dt. 24.05.2012

7. PED letter No. T-23011/02/10-E-in-C (P)/Com/22 dt. 25.05.2012

8. Under Secretary, P&E Department, Govt. of Mizoram, letter No. B. 19018/9/

2010-P&E dt. 08.06.2012

9. PED letter No. T-23011/02/10-E-in-C (P)/Com/25 dt. 14.06.2012

10. PED letter No. T-11011/01/11-EC (P)/Com/27 dt. 02.07.2012

11. PED letter No. T-23011/02/11-EC(P)/Com/31 dtl 19.7.2012

Additional information and revised / corrected data submitted by the PED in the
above references are taken into consideration while analyzing the ARR and Tariff
Petition. The information gaps in many elements of ARR still remain unanswered.
ARR submitted by the PED, has been considered by the Commission with specific
directives on the data gaps.

6.4 Growth of Consumers and Connected Load

PED has projected the category wise growth of consumers, their connected load
for the years 2010-11 (actuals), 2011-12 (estimated) and 2012-13 (projected) as
given in the table below:

PED revised the data vide letter No. 22 dated 25.05.2012 for the FY 2011-12 &
FY 2012-13

Table - 6.1: Category wise consumers and connected load

Sl. Category Previous Year Current Year Ensuing Year
No. FY 2010-11 (Actuals) FY 2011-12 (Estimated) FY 2012-13 (Projected)

41
 No of Connected No of Connected No of Connected
Consumer Load Consumer Load Consumer Load
s (KW) s (KW) s (KW)
1 2 3 4 5 6 7 8
1 (a) Kutir Jyothi 13604 1180.18 14047 1505.24 17500 1806.29
(b) Domestic (LT) 159188 165747 157301 191290.52 175000 210419.57
(c) Domestic (HT) 6 1040 10 1140
2 (a) Commercial (LT) 5107 18051 4910 17639.927 6000 19403.92
(b) Commercial (HT) - - 40 546.80 48 601.48
3 Public Lighting 4 957 763 1544.805 897 1699.29
4 (a) Irrigation & Agriculture (LT) 15 18.18 25 20
16 117
(b) Irrigation & Agriculture (HT) 1 85 2 93.50
5 (a) Public Water Works (LT) 10 518.25 11 570.08
34 17160
(b) Public Water Works (HT) 28 29102.62 30 32012.88
6 (a) Industrial (LT) 593 8357 599 5203.18 675 5723.50
(b) Industrial (HT) 27 0 11 2199.20 15 2419.12
7 Bulk Supply 217 26538 213 25678.88 250 *28246.77
Total 178790 238108 177944 276372.602 200463 304160.39
(Format – 1 of Tariff Petition)

Commission’s Analysis
As can be seen from the table above there is substantial increase in respect of
Kutir Jyoti and public lighting consumers. This might be due to extensive
electrification of villages and households under RGGVY programme. The number
of consumers for domestic, commercial and bulk in the year 2011-12 is shown
lesser than that of 2010-11. No reason for this is given.

6.5 Projected Energy Sales for FY 2012-13

PED has furnished category wise energy sales for the years FY 2008-09 to FY
2010-11 (Actuals), FY 2011-12 (Estimated) and FY 2012-13 (Projected) as given
in the table below:

Table-6.2: Consumer category-wise energy sales

(MU)
Sl. Sales FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13
No. (Actual) (Actual) (Actual) (Provisional) (Projected)
1. KJP (Domestic) 6.50 7.00 8.00
Domestic
2. 111.34 129.54 167.90 202.28 222.21
(HT & LT)
Commercial
3. 9.94 13.65 14.65 16.41 18.05
(HT & LT)
4. Public lighting 5.84 4.95 7.04 8.45 9.30
Irrigation & Agri
5. 0.00 0.001 0.12 1.00 1.50
(HT & LT)
6. PWW (HT & LT) 25.26 28.14 27.29 30.56 33.62
7. Industrial (LT) 1.62 2.40 1.57 1.89 3.00
8. Industrial (HT) 0.00 0.00 0.31 0.37 3.00
9. Bulk supply (HT) 11.38 12.02 12.18 14.62 13.17
10. TOTAL 165.38 190.70 237.56 282.58 311.85
(Table 2.1 of the Tariff Petition)

PED has revised the sales data for the FY 2011-12 & FY 2012-13 vide their letter
No. 22 dt 25.05.2012 as per the table 6.3 below:

42
Table 6.3 : Revised sales
(MU)
S. FY 2011-12 FY 2012-13
Sales
N. (Provisional (Projected)
1 2 3 4
1 Kutir Jyoty 3.394 5.00
Domestic (LT) 167.287 195.00
Domestic (HT) 0.2350 0.50
2 Commercial (LT) 17.975 21.00
Commercial (HT) 0.913 1.50
3 Public Lighting 6.044 7.00
4 Irrigation & Agriculture (LT) 0.004 1.00
Irrigation & Agriculture (HT) 0.091 0.25
5 Public Water Works (LT) 0.231 0.50
Public Water Works (HT) 36.052 42.00
6 Industrial (LT) 0.554 1.00
Industrial (HT) 0.329 0.50
7 Bulk Supply 17.312 20.00
Total 250.42 295.25

Commission’s Analysis of Energy Sales

The PED has submitted additional and revised data of the connected load, energy
sales & no. of consumers in the following references.

1. T.23011/02/10-E-in-C(P)/Com/19 dt 20.05.2012 Annexure-D in which

category wise connected load for FY 2011-12 (Actual) FY 2012-13
(Estimate) with slab wise break up.

2. T-23011/02/10-E-in C(P)/Com/22 dt 25.05.2012 where in energy sales in

the ARR Format-1 for the FY 2011-12 (Provisional) & FY 2012-13
(Estimate) with no. of consumers, connected load and sales are furnished.
The revised data received in the two references is contradicting with the
original data furnished in the ARR & Tariff petition for FY 2012-13 vide
Table 2.1 of Tariff petition.

Commission in the circumstances considers the data furnished at the latest for
analysis of ARR & Tariff petition for FY 2012-13.

Considering the revised data submitted vide letter no. 22 dt 25.05.2012 the
Category wise sales projected by the PED are discussed below:

1. Domestic

(a) Kutir Jyoti

43
PED has stated that Kutir Jyothi sales, under domestic category will be
considerably high during the FY 2011-12 and FY 2012-13 due to execution of
massive rural electrification programme under RGGVY project. The growth of
consumers projected at 3453 Nos. for FY 2012-13 over FY 2011-12 is found to be
25%. The comparative sales under ‘Kutir Jyothi’ during FY 2010-11, FY 2011-12
and FY 2012-13 (Projections) analysed below:

Table-6.4:
FY 2010-11 FY 2011-12 FY 2012-13
Sl. (Actual) (Provisional) (Projected)
Category
No No of Sales No of Sales No of Sales
Consumers (MU) Consumers (MU) Consumers (MU)
1 Kutir Jyothi 13604 6.50 14047 3.394 17500 5.00
Avg monthly
2 40 Units 20 Units 24 Units
Consumption

The provisional and projected sales of 2011-12 and 2012-13 are lesser than the
actual sale of 2010-11. On the other side there is a substantial increase in number
of consumers. The Commission considers a normal annual growth of 10 % on the
actual on 2010-11 reasonable.

PED shall ensure correct estimate of energy consumption for the current year
2011-12 and the consumers with higher consumption than permissible limit per
month under Kutir Jyoti shall be billed under Domestic – 2 category so that
substantial additional revenue could be realized.

The Commission approves the sales of Kutir Jyoti at 8.0 MU for the
FY 2012-13 as against 5 MU projected by PED.

(b) Domestic (LT)

In the additional information submitted, vide letter No. 22 dt 25.05.2012 PED has
stated that the energy sales projected for FY 2012-13 estimated at 195 MU
against actual sales of 167.287 MU for FY 2011-12. The provisional sale of 2011-
12 is less than the actual sale of 2010-11 which is considered not justified. The
Commission considers a nominal growth rate of 15% with the base year 2010-11
(actual). The provisional figure of 167.522 MU for the year 2011-12 may be due to
under billing and higher loss. PED had not segregated this category into LT
Domestic and HT Domestic in the Previous Year FY 2010-11. These are made
available for FY 2011-12and FY 2012-13 in the additional information submitted.
The increase in the number of consumers projected for FY 2012-13 over FY 2011-
12 is 17699 Nos. and the actual specific consumption during FY 2010-11 is 88

44
units where as the same is estimated for FY 2012-13 at 105 units. The projections
for FY 2012-13 are found to be minimal.

The Commission approves the sales projected at 222 MU for domestic (LT)
for the FY 2012-13 as against the revised figure of 195 MU projected by PED.

(b) Domestic (HT)

The sales of this category are projected at 0.50 MU for FY 2012-13 for 10
consumers under this category. There is no historical trend to substantiate the
projection, and the sales are meagre.

The Commission considers and approves 0.50 MU for Domestic (HT) consumers
for the FY 2012-13 as projected by PED, as these consumers are classified based
on the connected load exceeding 50 KW and supply extended at 11000 volts.
PED shall ensure installation of high accuracy static meters to this category of
consumers, so that the consumption can be measured and billed accurately.

The Commission approves total energy sales for domestic category at 222.5
MU (LT 222 MU & HT 0.50 MU) for FY 2012-13 as against 195.5 MU projected
by PED.

2. Commercial

(a) Commercial (LT)

This category was not segregated into LT and HT in the FY 2010-11. These are
made available for FY 2011-12 and FY 2012-13 in the additional information. In
the revised information submitted, vide letter No. 22 dt 25.05.2012 PED has
projected the LT sales at 21.00 MU. The sales projected for commercial (LT) for
FY 2012-13 are 21.00 MU against actuals of 17.975 MU for FY 2011-12. Though
1090 Nos. additional consumers are projected with 1764 KW additional load
during 2012-13, additional sales estimated are only 3.03 MU and the growth
accounts for 17%. The specific consumption for this category during FY 2011-12 is
arrived at 305 units. Considering the Specific Consumption of FY 2011-12, the
projected sales for FY 2012-13 will be 21.96 MU. Hence, the sales for this
category are considered at 22.00 MU.
The Commission approves sales at 22.00 MU for Commercial (LT) category
for FY 2012-13.

(b) Commercial (HT)

45
The sales for commercial (HT) category are projected at 1.50 MU for FY 2012-13.
There is no historical trend to estimate the consumption for this category.
Considering 10 hrs / day at LF of 0.5 (25 days / month), the estimated
consumption will be about 1.02 MU. The consumers are having 12.53 KW
connected load on an average. The consumption may be considerably less than
that projected at 1.50 MU for the FY 2012-13.

The Commission approves sales at 1.50 MU for commercial (HT) category

for the FY 2012-13, as projected by PED.
Total energy sales approved for commercial category is 23.50 MU (LT 22.00
MU + HT 1.50 MU) for FY 2012-13.

3. Public Lighting

PED has projected sales at 7.00 MU to this category for FY 2012-13. The sales
growth is projected at 15.82% over the current year estimates of 6.044 MU. The
increase in number of consumers and sales might be due to electrification of
number of villages.

The no. of consumers in the FY 2011-12 are 763 with a connected load of
1544.805 KW while the number of consumers projected for the FY 2012-13 are
897 with a connected load of 1699.29 kW, which accounts to be 10% growth in the
connected load and 17.56% growth in the sales is found to be steady.

Commission, considers the sales for the FY 2012-13 at 7.00 MU for public
lighting category as this is considered reasonable based on current year
consumption.

4. Irrigation & Agriculture (LT & HT)

Sales projected for this category are at 1.00 MU (LT) 0.25 MU (HT). The estimated
Projection for FY 2012-13 are found to be reasonable with addition of 11 Nos.
Consumers for FY 2012-13 as against 0.095 MU for FY 2011-12 both LT & HT put
together.
The Commission approves the sales at 1.00 MU (LT) and 0.25 MU (HT) to
irrigation & agriculture for the FY 2012-13, as projected by PED.
5. Public Water Works

(a) Public water works (LT)

46
The sales projected to this category are at 0.50 MU for the FY 2012-13. PED has
stated in their letter No. 22 dt 25.05.2012 that the projections are at about 15%
increase over the actuals of FY 2011-12 at 0.231 MU. The sales projected are
considered reasonable.

(b) Public water works (HT)

PED Mizoram has projected sales to this category at 42 MU for FY 2012-13. The
actuals for the FY 2011-12 are stated to be 36.052 MU. The sales projected
account for 16.50% increase and considered reasonable.

The Commission considers and approves the sales for PWW (LT) at 0.50 MU
and PWW (HT) 42 MU for FY 2012-13 as projected by PED.

6. Industrial

(a) Industrial (LT)

PED has projected sales to this category at 1.00 MU for 2012-13. The actuals for
FY 2011-12 is stated to be 0.554 MU. However, there is a decreasing trend in the
connected load. The projection is considered to be reasonable.

Accordingly, the Commission approves the sales at 1.00 MU for FY 2012-13

as projected by PED.

(b) Industrial (HT)

The sales to this category are projected at 0.50 MU for the FY 2012-13, against
the current year (2011-12) estimate at 0.32 MU. The projected sales during FY
2012-13 are found to be reasonable.

The Commission approves sales at 0.50 MU to this category for FY 2012-13

as projected by PED.

7. Bulk Supply

PED Mizoram has projected sales at 20 MU for the FY 2012-13, against the
actuals of 17.312 MU for the current year FY 2011-12. This accounts for a growth
of 15.53%.

There is a data inconsistency or mismatch in the connected load furnished in the

ARR Format – 1 in the previous year actuals, current year estimates and ensuing
year projections as stated in the Format – 1 (ARR). PED has submitted additional

47
 data for No. of consumers, Connected load, category wise, slab wise sales for FY
2012-13 on 30.04.2012 and revised data vide Lr. No. 22 dt 25.05.2012,wherein
the connected load furnished as 28246.77 kW is found to be acceptable for the
250 Nos. Consumers.

As the sales furnished in the revised data shows steady growth, the
Commission approves sales for the FY 2012-13 at 20.00 MU as projected by
PED.

6.6 Category Wise Energy Sales Projected and Approved

The category wise Energy Sales for the year 2012-13 as discussed above and
approved by the commission and projected sales by PED are given in table below:

Table - 6.5: Category wise Energy Sales projected and approved

(MU)
Sl.
Category Projected for FY2012-13 Approved for FY 2012-13
No.
1 2 3 4
1 (a) Kutir Jyothi MU 5.00 8.00
(b) Domestic (LT) 195.00 222.00
(c) Domestic (HT) 0.50 0.50
2 (a) Commercial (LT) 21.00 22.00
(b) Commercial (HT) 1.50 1.50
3 Public Lighting 7.00 7.00
4 (a) Irrigation & Agriculture (LT) 1.00 1.00
(b) Irrigation & Agriculture (HT) 0.25 0.25
5 (a) Public Water Works (LT) 0.50 0.50
(b) Public Water Works (HT) 42.00 42.00
6 (a) Industrial (LT) 1.00 1.00
(b) Industrial (HT) 0.50 0.50
7 Bulk Supply 20.00 20.00
  Total 295.25 326.25

6.7 T&D losses

PED has projected the distribution losses at 27.6% for the year 2012-13. Since
transmission is an integral part of distribution, the transmission and distribution
losses are considered together as distribution losses. PED has submitted that
since population in the State is scattered and spread out, the network has long
length of LT lines and hence the distribution losses are high. It is submitted that
PED has taken several measures to reduce the losses and projected the losses at
27.6% for FY 2012-13.

The Commission in the Tariff Order for FY 2010-11, had given distribution loss
trajectory as below:

48
 Table-6.6: Distribution loss trajectory
Year Loss level (%)
2010-11 35.00 (Approved)
2011-12 33.00
2012-13 31.00
2013-14 29.00

Commission’s Analysis

T&D losses projected by PED for FY 2012-13 has been examined by the
Commission. PED has not calculated the losses properly. PED has subsequently
submitted the revised data of sales for the FY 2011-12 and FY 2012-
13(Projections). The distribution losses projected by PED at 27.6% are found to be
not realistic assessment. The Commission has ascertained the T&D loss for he
year 2011-12 as 35.53 % from the revised information of power purchase
furnished by PED on 14th June, 2012. From the review of 2010-11 it is found that
the actual loss in the year was 39.02%. Based on the trend of loss reduction
from 2010-11 to 2011-12 the Commission has considered to fix the T&D loss
of the year 2012-13 at 31% and for the year 2013-14 at 29 %.

6.8 Energy requirement

PED has projected the energy requirement for FY 2012-13 as given in table
below:

Table - 6.7: Energy requirement projected for FY 2012-13

Particulars Energy (MU)

Energy sales 311.85
Distribution loss 101.00
Distribution loss (%) 27.60 (%)
Energy requirement 412.85

The Commission considering the T&D losses of 31% has computed energy
requirement based on energy sales approved for FY 2012-13 as given in table
below:

Table - 6.8: Energy requirement approved by the

Commission for FY 2012-13
Sl. No. Particulars Energy (MU) for FY 2012-13
1 Energy sales 326.25
2 Distribution loss 146.57
Distribution loss (%) 31 %
3 Energy requirement at state periphery 472.82
(1+2)

49
 The Commission approves the energy requirement at State’s periphery
(input to State transmission system) at 472.82 MU for FY 2012-13 as against
412.85 MU projected by PED.

6.9 Sources of power

6.9.1 Own generation

PED owns eleven mini hydel stations with an installed capacity of 29.35 MW, one
diesel station of 0.5 MW and a thermal station of 22.92 MW run on HFO. Thus the
total installed capacity is 52.77 MW. The 22.92 MW HFO station is kept as
standby in view of high cost of generation and run only during emergency. The
generation from hydel is 43 MU. The Serlui ‘B’ station generated 15.30 MU during
FY 2010-11, but was not run during FY 2011-12 due to hydro mechanical problem
and a generation of 23.00 MU is considered for FY 2012-13. Thus total generation
available from own stations is 43.00 MU.

The generating stations, their capacity and generation during FY 2010-11, 2011-
12 and 2012-13 projected by PED are given in table below:

Table - 6.9: Gross generation from own generating stations

(MU)
Sl. Station Installed capacity 2010-11 2011-12 2012-13
No.I Hydel (MW) (Actual) (Provisional) Projected)
1 Serlui 'A' 1.00 0.63 0.61 0.70
2 Tuirivang 0.30 Damage Damage 0.00
3 Khawiva 1.05 1.30 1.60 1.50
4 Tuipui 0.50 1.52 1.20 1.25
5 Maicham-I 2.00 4.65 3.00 3.00
6 Teirei 3.00 1.93 2.08 2.30
7 Tuipanglui 3.00 2.08 1.50 2.00
8 Kau-Tlabung 3.00 3.74 6.10 5.75
9 Lamsial 0.50 0.15 0.24 0.50
10 Maicham-II 3.00 0.62 -2.00 3.00
11 Serlui 'B' 12.00 15.30 0.00 23.00
II Diesel
12 Lengpui 0.50 0.01 0.02 0.02
III HFO
13 Bairabi 22.92 1.72 0.00 0.00
Total 52.77 33.65 18.35 43.02
(Table 1.1 of petition)
Considering the auxiliary consumption at 0.5%, the net generation from the hydel
stations would be 40.85 MU and total including diesel station would be 40.87 MU.

The Commission approves generation of 40.87 MU (40.85 + 0.02) (Net) from

PED’s own generation projected at 43.00 MU for FY 2012-13.

50
6.9.2 Purchase from outside the state

PED has allocation of power from various Central Generating Stations in North
Eastern Region - (NEEPCO), (NHPC) and Eastern Region - (NTPC) and from
Tripura gas based station as given below:

Table - 6.10: Allocation of power from Central Sector and other Generating Stations

Share from firm

Sl.
Name of the station allocation MW
No.
(%)
A. Central Sector
1 Koppili I HEP (200MW) 4.618 9.24
2 Koppili II HEP (25MW) 6.278 1.57
3 Khandong HEP (50MW) 3.940 1.97
4 Ranganadi HEP (405MW) 5.710 23.13
5 Doyang HEP (75MW) 5.240 3.93
6 Assam gas based projects (291MW) 5.428 15.80
7 Agartala gas based project (84MW) 6.190 5.20
8 Loktak HEP(105MW) 5.068 5.32
9 Farakka STPP (1600 MW) 0.214 3.42
10 Kahalgaon STPP I (840 MW) 0.210 1.76
11 Talcher STPP I (1000 MW) 0.214 2.14
  Total (CS) (4675 MW) 1.560 73.48
B. State Sector
12 Baramura GTP IV & V (42 MW) 25.000 10.50
C. Joint Sector
13 Palatana   22.00
  G. Total (4702 MW) 26.560 105.98

The Commission has approved purchase of power from Central Sector and other
Generation Station at 106 MW

6.9.3 Energy drawl projected by PED from Central Generating Stations and Other
sources

PED has projected drawal of about 483.00 MU from the Central Generating
Stations and other sources during FY 2012-13 as given in table below:

51
Table - 6.11: Energy purchase projected for FY 2012-
13 from Central Generating Stations and
other sources
Energy Drawl (In MU)
FY 2009-
Sl. No. Station FY 2010-11 FY 2011-12 FY 2012-13
10
(Actual) (Provisional) (Projected)
(Actual)
  NEEPCO 242.84 272.34 272.34 275.05
A Hydro        
1 Kopill - I HEP (200 MW) 32.21 32.06 32.06 32.06
2 Kopili - II HEP (200 MW) 4.91 5.02 5.02 5.50
3 Khandoni – II HEP (50MW) 5.90 6.20 - 6.20
4 Ranga nadi H EP (405MW) 58.19 79.93 79.93 80.00
5 Doyang HEP (75MW) 9.03 12.84 12.84 15.00
  Total 'A 110.24 136.05 136.05 138.76
B Gas Based        
6 Assam Gas based Power 92.81 97.60 97.60 97.60
7 Agartala Gas Turbine Power 39.79 38.69 38.69 38.69
  Total 'B' 132.6 136.29 136.29 136.29
C          
8 NHPC Loktak HEP (105 MW) 25.66 29.93 30.00 30.00
  Total ‘C’ 25.66 29.93 30.00 30.00
D Eastern Power        
9 Fakakka STPP 0 - 19.20 19.20
10 KahaIgaon STPP-I 0 - 12.00 12.00
11 TaIcher STPP-I 0 - 16.80 16.80
  Total ‘D’ 0 0 48.00 48.00
E Inter State Projects        
12 Baramura (2x21MW), 25% 41.08 45.98 79.00 90.00
  Total ‘E’ 41.08 45.98 79.00 90.00
  Total (A+B+C+D+E) 309.58 348.25 429.34 443.05
(Table 2.8 of petition)

In the additional information submitted on 30/04/2012, PED submitted that 40 MU

from Palatana plant will be available during FY 2012-13. With this the total
availability of energy for purchase by PED will be 483.05 MU (443.05+40).

Commission’s Analysis

The Commission has examined the allocation and generation available for PED
from Central Generating Stations. The allocation is the same as in FY 2011-12
and a new Generating Station at Palatana scheduled to be commissioned in
August 2012 is also considered and it is stated that 40 MU energy will be drawn
during FY 2012-13 from this station making the total energy available at 483 MU
during 2012-13 against 430 MU during FY 2011-12.

52
 The Commission approves purchase of 483 MU from Central Generating
Stations and other sources for FY 2012-13 as given in table below:

Table - 6.12: Power purchase approved by the Commission for FY 2012-13

(MU)
Energy Drawl Approved for
Sl. No. Station
FY 2012-13
  NEEPCO
A Hydro  
1 Kopill - I HEP (200 MW) 32.00
2 Kopili - II HEP (200 MW) 5.50
3 Khandoni – II HEP (50MW) 6.20
4 Ranga nadi H EP (405MW) 80.00
5 Doyang HEP (75MW) 15.00
  Total 'A 138.70
B Gas Based  
6 Assam Gas based Power 97.60
7 Agartala Gas Turbine Power 38.70
  Total 'B' 136.30
C NHPC  
8 NHPC Loktak HEP (105 MW) 30.00
  Total ‘C’ 30.00
D Eastern Power NTPC  
9 Fakakka STPP 22.00
10 KahaIgaon STPP-I 12.00
11 TaIcher STPP-I 14.00
  Total ‘D’ 48.00
E Inter State Projects  
12 Baramura (2x21MW), 25% each 90.00
13 Palatana Sept’12 to Mar’13 40.00
  Total ‘E’ 130.00
  Total (A+B+C+D+E) 483.00

6.10 Energy balance

PED has projected the energy balance by considering the energy requirement and
energy available from various sources as given in table below. PED has submitted
revised sales for the FY 2011-12 and FY 2012-13 vide their letter No. 22 dt
25.05.2012.

53
Table - 6.13: Energy balance projected by PED
(MU)
Sl. Previous year Current year Ensuing year
Particulars
No. (FY 2010-11) (FY 2011-12) (FY 2012-13)
ENERGY REQUIREMENT
1 Energy sales
2 Total energy sales 237.56 282.58 311.85
3 Overall losses % 33.39 27.16 27.60
4 Overall losses 119.06 110.00 101.00
5 Total energy requirement 356.62 392.58 412.85
ENERGY AVAILABILITY
Net own generation (A)
1.1 - Hydel 31.93 18.33 43.00
1.2 - Diesel based 0.01 0.02 0.02
1.3 - Furnace oil based 1.72 - -
2 Power purchase (B)
-From NEEPCO
2.1 Hydel 136.05 136.05 138.76
2.2 Gas based 136.29 136.29 136.29
2.3 - From NHPC – Loktak 29.93 30.00 30.00
2.4 EE Region power - 48.00 48.00
2.5 From Tripura 45.98 79.00 90.00
2.6 Palatana 40.00
3 Trading / UI (C) (25.29) (55.11) (73.22)
4 Energy availability (A+B+C) 356.62 392.58 412.85
(Table 2.4 of petition)

Commission’s Analysis

The Commission has examined the energy balance projected by PED. PED has
not considered the interstate transmission loss (pool loss) while working out the
total energy available for distribution in the state. The PED has not explained
specifically the measures taken up to ensure reduction in losses assessed as
27.6% in the projections for FY 2012-13. The Commission has also reviewed
energy drawl and the sales achieved during FY 2010-11 and FY 2011-12.
Considering the energy requirement and energy available from own generation
(net), energy entitlement from central generating stations and other sources as
also considering the revised sales data submitted vide PED letter No. 22 dt
25.05.2012, the energy balance computed by the Commission is given in table
below:

54
 Table - 6.14: Energy balance approved for FY 2012-13

Sl. No. Particulars Energy (MU) for FY 2012-13

1 Energy sales 326.25
2 Distribution loss 146.57
Distribution loss (%) 31 %
3 Energy requirement at state periphery 472.82
(input to state transmission system)
4 Energy available
(a) Own generation (net)
Hydro Net 40.85
Diesel Net 0.02
Sub-total (a) 40.87
(b) Power purchase
(i) NEEPCO (Hydel + Gas) 270.00
(ii) NHPC (Loktak) 30.00
(iii) Eastern Region (NTPC) 48.00
(iv) Tripura 90.00
(v) Palatana 40.00
Sub-total (b) 483.00
Total 523.87
(c) Less: Pool loss at 3.5% {on (b)} 16.90
5 Total energy available (a+b-c) 506.97
6 Trading / UI - 34.15
7 Net energy available (5 + 6) 472.82

The Commission approves the energy balance as above, which provides

surplus energy of 34.15 MU.

6.11 Gross Fixed Assets

PED has not maintained any registers / records of gross fixed assets but has
projected the fixed assets for FY 2010-11and FY 2011-12 and not projected
assets to be added during FY 2012-13. But it has projected certain asset
capitalisation for FY 2012-13 in the petition.

The GFA projected by PED for FY 2010-11 and 2011-12 are given in table below:

Table - 6.15: Gross Fixed Assets projected by PED

(Rs. lakh)
Sl. No. Description 2010-11 2011-12
1 Gross Fixed Assets as per JERC (M&M) 31768 33025
2 Less: Consumer contribution 0 0
3 Balance GFA 0 33025
4 Less: Grants
5 Balance GFA 33025
6 Add 10% addition 1257 21
7 Closing GFA 33025 33046
8 Average GFA 33025 33036
9 Rate of Depreciation 5.28% 5.28%
10 Depreciation 1744 1744

55
 (Table 2.7 of petition)

It is stated that the figures given in the ARR & Tariff petition are the unaudited
figures and, the Department could not get audited statement on various accounts
due to procedural delay.

PED has, later on, furnished revised fixed assets and depreciation data from
01.04.2007 vide their letter No. 19 dated 20.05.2012 as detailed below:

Table - 6.16: Revised fixed assets and depreciation

Asset Value on Asset addition Asset Value of

Assets Rate of Depreciatio Accumulate
Sl. Col. 3 after 4 yrs during 2007-08 addition Assets as on
Item based on Depreciatio n Charges d
No. (as on to 2010-11 (4 during FY 01.04.2012
01.04.2007 n in % on Col 5 Depreciation
01.04.2011) years) 2011-12 (i.e. 4+5+6)
1 2 3 4 5 6 7 8 9 10
Thermal
1                
Generation
2 Hydro Generation 10227 8067 1673.2 0 9740 5.28 514 514
3 Transmission 7617 6008 6307.27 2417.55 14733 5.28 778 778
4 Distribution 22245 17547 1857.86 82 19487 5.28 1029 1029
5 Street light 478 377 95.6 23.9 497 5.28 26 26
6 Building 2104 1660 382.44 210.72 2253 5.28 119 119
  Total 42671 33659 10316 2734 46709   2466 2466

PED subsequently with reference to their letter dated 2/7/2012 has submitted
revised GFA data superseding the data furnished on 20/5/2012 as per table
below:

Table - 6.17 : Value of Assets and Depreciation Charges

(Figures in lakhs)
GFA for Asset Asset after Asset Asset after Asset Asset after
S. Depreciation addition depreciation addition depreciation addition depreciation
Item
N. based on during 2007 – @ 5.28% as during 2008 – @ 5.28% as during 2009 – @ 5.28% as
01.04.2007 08 (Actual) on 01.04.2008 09 (Actual) on 01.04.2009 10 (Actual) on 01.04.2010
1 2 3 4 5 6 7 8 9
1 Thermal Generation
2 Hydro Generation 10227 259.40
Break-up Break-up
3 Transmission 7617 3449.59
not not
4 Distribution 22245 available available 809.27
5 Street light 478 50.48
6 Building 2104 0.00
Total 42671 8802 48755 5810 51684 4568.74 53283

Asset after Asset Asset after Asset after

Asset addition Asset addition
S. depreciation addition depreciation depreciation
Item during 2010- during 2012- Remarks
N. @ 5.28% as during 2011- @ 5.28% as @ 5.28% as
11 (Actual) 13 (Actual)
on 01.04.2011 12 (Actual) on 01.04.2012 on 01.04.2013
1 2 10 11 12 13 14 15 16
1 Thermal Generation Break-up Break-up
2 Hydro Generation 1185.9 not 0 not 19133.00
3 Transmission 910.03 available 2417.55 available 457.06
4 Distribution 756.1 82.00 2449.23
5 Street light 26.4 27.75 29.13

56
6 Building 111.6 210.72
Total 2990 53302 2738.02 53081 22068.42 71181
Commission’s Analysis

The Commission had discussed the issue of GFA in detail in the Tariff order for
FY 2010-11 and arrived at the closing GFA for FY 2010-11 as Rs. 31811 lakhs
(Table 5.33 of Tariff order for FY 2010-11) provisionally in the absence of reliable
data from PED.

It is observed that PED has taken the gross fixed assets as on 01.04.2007 and
then added yearly addition there on to arrive at the Gross Fixed assets as on
01.04.2012.

The entire capital expenditure has been funded by GOI / Government of Mizoram
through budgetary support, mostly by providing grants and subsidies. The
Department has not prepared any proforma accounts. The Power and Electricity
Department has not prepared and maintained the Statements of accounts viz
profit & loss account, balance sheet etc. The Department has not maintained any
asset and depreciation registers.

Regulation 96 (2) of JERC for Manipur and Mizoram (Terms and Conditions for
Determination of Tariff) Regulations, 2010 reads as follows:

“Investments made prior to and upto the year of the notification of these
Regulations shall be considered on the basis of audited accounts or approvals
already granted by the Commission”.

Though audited asset register, the depreciation registers, and the audited annual
accounts are not maintained, the gross block of assets are projected by PED in
the ARR and Tariff Petition and in subsequent submissions based on the data
available with them for years.

The Commission considered the GFA approved as on 1/4/2007 vide table 5.33 of
Tariff Order for FY 2010-11 at Rs. 47063 lakhs as against Rs. 42671 lakhs
proposed by PED. The asset value furnished by the PED is not after depreciation.
The Commission considers full cost of the gross asset value (not depreciated
value) for purposes of depreciation. The revised asset additions from the years
2009-10 to 2012-13 submitted vide letter dated 2/7/2012 has been considered for
calculation the GFA for 2012-13. The position of assets consumer contribution and
grants from 2007-08 to 2012-13 is detailed in the table below:

57
 Table – 6. 18: Assets consumer contribution and grants from 2007-08 to 2012-13

Gross Fixed Consumer Balance

Particulars Grants
Assets (GFA) Contribution Assets
1 2 3 4 5
As on 01.04.2007 47063 347 16792 29924
Addition 2007 – 08 8802 7922 880
As on 01.04.2008 55865 347 24714 30804
Addition 2008-09 5810 5229 581
As on 01.04.2009 61675 347 29943 31385
Addition 2009-10 4569 4112 457
As on 01.04.2010 66244 347 34055 31842
Addition 2010-11 2990 2691 299
As on 01.04.2011 69234 347 36746 32141
Addition 2011-12 2738 2464 274
As on 01.04.2012 71972 347 39210 32415
Addition 2012-13 22068 19861 2207
As on 01.04.2013 94040 347 59071 34622
Note: The grants are considered at 90% of the Capex from FY 2007-08 onwards

Sector-wise GFA for the FY 2012-13 is approved as given in table below:

Table - 6.19: Sector-wise GFA for the FY 2012-13

(Rs. in Lakhs)
Sl. Opening GFA Asset addition during
Item GFA as on 31/3/2013
No. 01.04.2012 FY 2012-13

1 2 3 4 5
1 Generation 15006.16 19133.00 34139.16
2 Transmission 22707.17 457.06 23164.23
3 Distribution 30789.62 2478.36 33267.98
4 Buildings 3469.05 0 3469.05
Total 71972 22068.42 94040.42

6.12 Capital Expenditure Plan and Capitalization

In the Petition PED has given the capital expenditure incurred during the
year2009-10, 2010-11 and 2011-12 with details of works. It has not provided
capital expenditure plan with details of works proposed to be executed during FY
2012-13. It has simply indicated the provisional capital expenditure and asset
capitalisation for FY 2012-13 as below:
Table - 6.20: Capital expenditure and asset capitalisation for FY 2012-13
(Rs. lakh)
Particulars FY 2012-13
Capital expenditure during the year 13829.32
Capitalisation during the year 12890.77

58
 PED Mizoram in their letter dt 20.05.2012, have submitted additional
data/information, where in a revised Capital expenditure and Capitalisation for the
FY 2010-11 to 2012-13 are furnished as detailed below:

Table - 6.21: CAPEX and capitalisation projected by PED

(Rs. lakhs)
Cumulative
FY 2010-11 FY 2011-12 FY 2012-13
Particulars CAPEX till FY
(Actual) (Provisional) (Projected)
2010-11
Capital expenditure
59081.26 3941.63 4985.00 13495.27
incurred
Asset capitalisation
during the financial - 2963.27 2710.27 3585.29
year

Commission’s Analysis

PED has projected very high CAPEX for FY 2012-13 which may not realize during
the year as seen from CAPEX during earlier years. However, Commission
considers capitalisation as Projected by PED in the revised data vide table - 6.21
above. PED may priotise the expenditure as per State plan fund allocation.

6.13 Fuel cost

PED has projected fuel cost of Rs. 2.80 lakhs for FY 2012-13 for generation of
0.02 MU from the Lengpui diesel generating station of capacity 0.50 MU. PED has
stated that this D.G. set is kept at Lengpui Airport on stand by mode for meeting
the emergency requirements due to its high cost of generation. PED has not
shown any generation for FY 2012-13 from the 22.92 MW Bairabi plant as the
same is not in operation due to high cost of generation. PED has estimated the
fuel cost at Rs. 2.80 lakhs for generation of 0.02 MU from Lengpui DG set.

The Commission approves the fuel cost of Rs. 2.80 lakhs for FY 2012-13 as
projected by PED.

6.14 Power purchase cost

The allocation of power from Central Generating Stations and other sources and
the energy estimated to be available from these stations for purchase are
discussed in para 6.10.2 & 6.10.3 above.

59
 PED has submitted in the ARR petition only the power purchase cost for FY 2012-
13 and that, it is worked out based on the updated power purchase rate that
prevailed during the FY 2011-12. On further querry the PED has submitted revised
data of power purchase for the FY 2010-11, 2011-12 and 2012-13 in Format-7
vide their letter No. T-23011/02/10-E-in-C(P)/Com/25 dt 14.06.2012 as tabulated
below:

Table - 6.22: Power Purchase Details for FY 2010-11

External Energy Mizoram’s V/C
Sl. Purchase
Station losses Rec AFC share (per FC VC Total
No. (MU)
(MU) (MU) (%) kWh)
  NEEPCO                  
A Hydro                  
1 Kopilli – I HEP (200 MW) 32.06 1.12 30.94 5,767.00 4.61 0.28 130.14 89.46 219.60
2 Kopilli – II HEP (25 MW) 5.02 0.18 4.84 1,295.11 6.04 0.86 35.87 43.19 79.06
3 Khandog HEP (50 MW) 6.20 0.22 5.98 1,963.28 3.94 0.41 38.60 25.16 63.76
4 Ranganadi HEP (405 MW) 79.93 2.80 77.13 20,340.81 5.70 0.77 700.86 617.82 1,318.68
5 Doyang HEP (75MW) 12.84 0.45 12.39 6,435.00 5.25 1.48 181.75 189.58 371.33

B Gas based                  
Assam gas based Power Project
6 97.60 3.42 94.19 27,283.63 5.41 1.52 1,322.37 1,459.16 2,781.53
(291 MW)
Agartala gas Turbine Power Project
7 38.69 1.35 37.34 7,826.45 5.98 1.90 500.47 733.61 1,234.08
(84 MW)

C Others                  
8 Loktak HEP (105 MW) 29.93 1.05 28.95 10,537.29 5.02 0.64 136.86 191.84 328.70
9 NTPC                  
  Farakka STPP (1600 MW) - - - - 0.00 - - - -
  Kahalgaon STPP-I (840 MW) - - - - 0.00 - - - -
  Talcher STPP – II (1000 MW) - - - - 0.00 - - - -
10 Tripura – Baramura (2X5.25 MW) 45.96 1.61 44.37 4,176.00 25.00 1.75 533.35  804.61 1,337.96
11 OTPC-Palatana (726 MW) 3.03
12 1) Trans. Charges (PGCIL) - -  - - -   - - 915.31
  2) ULDC Charges (PGCIL) - - - - - - - - 45.95
  Total 348.24 12.19 336.05 85,624.56 8.87 1.19 3,580.28 4,154.43 8,695.97
O&M Expenses of Local
13                 55.58
generating Stations
Payment made during FY 2010-11
14                 774.82
against Supply bills received
15 Net Trading / UI 19.88   19.88  - - 3.96  -  - 589.29
  Grand Total 368.12 12.19 355.93 85,624.56 8.87 4.16 3,580.28 4,154.43 10,115.65

Table 6.23 : Power Purchase Details for FY 2011-12

External Energy Mizoram’s V/C

Sl. Purchase
Station losses Rec AFC share (per FC VC Total
No. (MU)
(MU) (MU) (%) kWh)
  NEEPCO                  
A Hydro                  

60
1 Kopilli – I HEP (200 MW) 41.53 1.45 40.07 8,129.79 4.61 0.31 141.87 128.73 270.60
2 Kopilli – II HEP (25 MW) 5.51 0.19 5.31 1,424.62 6.04 0.86 49.73 47.36 97.10
3 Khandog HEP (50 MW) 6.98 0.24 6.74 4,477.31 3.94 0.45 63.99 31.41 95.40
4 Ranganadi HEP (405 MW) 55.29 1.94 53.35 31,980.31 5.70 1.11 1,060.38 613.71 1,674.09
5 Doyang HEP (75MW) 11.49 0.40 11.08 6,435.00 5.25 1.48 176.07 169.66 345.73

B Gas based                  

Assam Gas Based Power Project

6 93.72 3.28 90.44 27,283.63 5.41 1.48 1,256.65 1,386.99 2,643.64
(291 MW)

Agartala gas Turbine Power Project

7 38.78 1.36 37.42 7,826.45 5.98 1.99 431.82 771.73 1,203.55
(84 MW)

C Others                  
8 Loktak HEP (105 MW) 25.54 0.89 24.64 10,537.29 5.02 1.12 528.97 286.03 533.53
9 NTPC                  
  Farakka STPP (1600 MW) 20.95 0.73 20.22 - 0.00 3.36 150.02 703.99 854.01
  Kahalgaon STPP-I (840 MW) 10.40 0.36 10.04 - 0.00 2.12 165.99 220.51 386.50
  Talcher STPP – II (1000 MW) 12.81 0.45 12.36 - 0.00 2.81 12.05 359.83 371.88
10 Tripura – Baramura (2X5.25 MW) 45.96 1.61 44.37 4,176.00 25.00 1.75 533.35  804.61 1,337.96
11 OTPC-Palatana (726 MW) - - - - 3.03 3.46 - - -
12 1) Trans. Charges (PGCIL) - -  - - -   - - 1,279.40
  2) ULDC Charges (PGCIL) - - - - - - - - 60.00
  Total 348.24 12.19 336.05 85,624.56 8.87 1.19 3,580.28 4,154.43 8,695.97
O&M Expenses of Local
13                 79.78
generating Stations

Payment made during FY 2010-11

14                 1,108.13
against Supply bills received
15 Net Trading / UI 46.21 46.21 - - 4.62 - - 2,134.90
  Grand Total 435.76 13.63 422.13 102,270.39 8.87 6.13 4,877.60 5,884.90 15,143.25

Table - 6.24: Power purchase cost projected by PED for FY 2012-13

(Rs. lakh)
External Energy Mizoram’s V/C
Sl. Purchase
Station losses Rec AFC share (per FC VC Total
No. (MU)
(MU) (MU) (%) kWh)
  NEEPCO                  
A Hydro                  
1 Kopilli –I HEP (200 MW) 32.00 1.12 30.88 8129.79 4.61 0.38 374.78 120.96 495.74

61
2 Kopilli –II HEP (25 MW) 5.50 0.19 5.31 1424.62 6.04 0.92 86.05 50.55 136.59
3 Khandog HEP (50 MW) 6.20 0.22 5.98 4477.31 3.94 0.73 176.41 45.32 221.73
4 Ranganadi HEP (405 MW) 80.00 2.80 77.20 31980.31 5.70 1.16 1822.88 927.20 2750.08
5 Doyang HEP (75MW) 15.00 0.53 14.48 6435.00 5.25 1.48 337.84 221.55 559.39
B Gas based                  
Assam gas based power project
6 97.60 3.42 94.18 27283.63 5.41 1.52 1476.04 1486.45 2962.49
(291 MW)
Agartala gas turbine power project
7 38.69 1.35 37.34 7826.45 5.98 2.04 468.02 789.28 1257.30
(84 MW)
C Others                  
8 NHPC Loktak HEP (105 MW) 30.00 1.05 28.95 10537.29 5.02 1.22 528.97 266.00 894.97
9 NTPC                  
  Farakka STPP 22.00 0.77 21.23 91005.42 0.15 2.73 136.51 600.60 737.11
  Kahalgaon STPP-1 12.00 0.42 11.58 55832.26 0.15 2.60 83.75 312.00 395.75
  Talcher STPP – 1 14.00 0.49 13.51 59480.41 0.15 1.53 89.22 214.20 303.42
10 Tripura – Baramura (2X5.25 MW) 90.00 3.15 86.85 4176.00 25.00 1.75   1575.00 1575.00
11 OTPC-Palatana (726 MW) 40.00   38.60   3.03 3.46   1384.00 1384.00
12 1) Trans. Charges (PGCIL) - -             1236.00
  2) ULDC Charges (PGCIL) - -             60.00
  Total 482.99 15.50 466.09 308588.48 8.87 1.68 5580.47 8093.10 14969.57
O&M Expenses of Local
13                 120.00
generating stations
Supplementary bills received due
14                 4182.34
to revision of AFC, etc.
15 Net Trading / UI -70.15   -70.15     3.00     -2104.50

  Grand Total 412.84 15.50 395.94 308588.48 8.87 4.68 5580.47 8093.10 17167.41

Commission’s Analysis

The Commission has examined the station-wise power purchase cost projected by
PED in the additional data submitted vide letter dated 14.06.2012. Commission
has verified the energy availability from North Eastern Power Coordination
Committee (NERPC) and also the details of bills raised by respective generating
companies for the FY 2010-11 and FY 2011-12. The prices as billed for FY 2011-
12 by the respective generating companies are considered for working out power
purchase cost. PED has also submitted in their letter No. T-23011/02/10/E-in-C
(P)/Com/12 dated 30.04.2012 that the generation from Palatana expected from
September 2012 and has assumed that 40 MU energy would be available from
this station during FY 2012-13. The Commission has considered the Power
Purchase costs projected by PED for the FY 2012-13 at 483 MU.
For calculation of the power purchase cost the rates for AFC has been considered
at the rates approved by CERC for the year 2012-13. Other rates are considered
at the same rate proposed by the PED
Power purchase cost computed by the Commission for FY 2012-13 is given in the
table below :

62
 Table - 6.25: Power purchase cost approved by the Commission for FY 2012-13

PGCIL & Total

Sl. Purchase AFC Mizoram’s V/C FC VC
Station Others (Rs.
No. (MU) (Crs) share % (Rs./Unit) (Rs. Lakh) (Rs. Lakh)
(Rs. Lakh) Lakh)
I NEEPCO                
1 Khandong 6.20 44.7731 3.94 .73 176.41 45.26   221.67
2 Kopili-I 32.00 81.2979 4.61 .38 374.78 121.60   496.38
3 Ranganadi 80.00 291.3941 5.70 1.16 1660.95 928.00   2588.95
4 AGTPP, Tripura 38.70 69.8278 5.98 2.04 417.57 789.28   1206.85
5 AGBPP, Kathalguri 97.60 238.82 5.41 1.52 1292.02 1483.52   2775.54
6 Doyang, Nagaland 15.00 58.5000 5.25 1.48 307.13 222.00   529.13
7 Kopili - II 5.50 13.3856 6.04 .92 80.85 50.60   131.45
II NHPC                
8 Loktak, Manipur 30.00 101.2114 4.94 1.22 499.98 366.00   865.98
Arrears of NHPC
9             478.03 478.03
(FY 2011-12)
Arrears of NEEPCO
10             3209.75 3209.75
(2011-12)
III Arrears of NERLDC             20.70  20.70 
11 PGCIL arrears            473.85 473.85
PGCIL charges
12            1236.00 1236.00
2012-13
13 ULDC charges             60.00 60.00
IV NTPC Thermal                
14 Farakka 22.00 827.3200 0.15 2.73 124.10 600.60   724.70
15 Kahalgaon I 12.00 507.5680 0.15 2.60 76.14 312.00   388.14
16 Talcher 14.00 540.7310 0.15 1.53 81.11 214.20   295.31
17 Tripura - Baramura 90.00   25.00 1.75   1575.00   1575.00
18 Palathana 40.00     3.46   1384.00   1384.00
19 Other charges                
  Total 483       5091.04 8092.06 5478.33 18661.43

The Commission accordingly approves the power purchase cost at

Rs. 18661.43 lakhs (including arrears) and purchase of 483 MU for FY 2012-
13 as projected by PED.

6.15 Operation and Maintenance Expenses

6.15.1 Employee Cost

PED Mizoram has projected employee cost at Rs 8052.30 lakhs for the FY 2012-
13, which is 11.84% escalated over the estimated expenses of Rs 7200.10 lakhs
for the FY 2011-12. The details of employee cost projected by PED for the year
FY 2010-11, FY 2011-12 and FY 2012-13 are given in table below:

Table - 6.26: Employee Cost

(Rs. lakh)
Sl. FY 2010-11 FY 2011-12 FY 2012-13
Category
No. Previous Year Current Year Ensuing Year
1 Salary 5751.38 6849 7671.00
2 Medical treatment 286.02 274.10 288.30

63
 Sub Total 6037.40 7123.10 7959.30
3 Other allowances - - -
4 Wages - - -
5 Domestic Traveling expenses 84.36 76.00 92.00
6 Stipend 46.69 1.00 1.00
Sub Total 131.05 77.00 93.00
Total Employee Cost 6168.45 7200.10 8052.30
(Table 2.11 of the Petition)

PED has, on a equerry from the Commission, submitted actual expenditure for FY
2011-12 under employee cost as Rs. 55.138 cores vide their letter No.12, dated
30/4/2012. PED has again submitted the actual expenditure for FY 2011-12 at Rs.
8722.60 lakhs and projection for FY 2012-13 at Rs. 8564 lakhs.

Commission’s Analysis

PED Mizoram has not furnished break up of salary components, such as, Basic
Pay. DA compensatory allowance, house rent allowance, leave travel concession,
pension gratuity, leave salary, etc.

The Commission has approved employee expenses at Rs 7655.81 lakh for FY

2010-11 in the Tariff order for FY 2010-11, against which the PED incurred the
expenses at Rs 6168.45 lakh as actuals, which is 19.43% less than approved
level. PED has stated that they have not considered leave salary contribution,
Pension and terminal benefits in the Employee cost for FY 2012-13 and claimed
an over all increase of about 11% over the expenses for FY 2011-12.

PED Mizoram have submitted the revised data of employee cost vide their No.
T23011/02/10E-in-C(P) Com/19 dt 20.05.2012 for the year FY 2011-12 (actuals)
and estimated data for FY 2012-13. As per the revised data the Employee Cost
has been Projected at Rs. 8564 lakh for FY 2012-13 as detailed below which is
inclusive of arrears of 6th Pay Commission. The employee cost projected for FY
2012-13 is almost at the same level of FY 2011-12 excluding arrears. It is stated
that arrears payment was not released to regular staff during the FY 2011-12.
PED has not maintained consistency of the data, and the projection for FY 2012-
13 found to be exorbitant. The Commission however considers the data submitted
at the latest, as a matter of regulatory process to finalize ARR for FY 2012-13.

Table - 6.27: Revised employees cost

Sl. FY 2012-13
FY 2011-12 (Actuals)
No. (Projection)
Plan Non-plan Arrears

64
 1 Regular 5375.80 138.00 - 5569.00
2 Work Charged 2876.40 88.90 189.20
2995.00
3 Muster Roll - - 54.20
8252.20 226.90 243.4 8564

The Commission approves Employees Cost at Rs. 8564 lakh as projected by

PED for FY 2012-13.

6.15.2 Repairs and Maintenance

PED Mizoram has projected R & M expense at Rs 4311.40 lakh for the FY 2012-
13 as given in the table below:

Table - 6.28: Repairs and Maintenance expenses projected by PED

(Rs. lakh)
Previous Year Current Year Ensuing Year
Category
FY 2010-11 FY 2011-12 FY 2012-13
Minor R &M 4101.15 3996.00 4200.00
R & M of Motor
131.85 111.40 111.40
Vehicles
4233.00 4107.40 4311.40
(Table 2.13 of the Petition)

It is stated that PED is strained to determine the amount to be incurred on Repair

& Maintenance of its fixed assets in the light of very limited financial resources
allocated by Govt of Mizoram. Therefore there is no clear trend of Repairs &
Maintenance expenses during the years 2010-11 to 2012-13. PED sought for the
approval of R & M expenses as projected in order to ensure better and timely
maintenance of distribution network and to extend better consumer service.

Commission’s Analysis

PED Mizoram has not furnished details of volume of fixed assets, spares,
consumables and service expenses and audited accounts for the projected
expenses. The Commission had approved Rs 1011 lakh towards R & M for the FY
2010-11 as claimed by the licensee. PED Mizoram has not furnished details of
distribution net work and audited accounts in support of the projected R & M
expenses for the FY 2012-13. As per the Regulations 98 (4), (c), (i), (ii), of JERC
Manipur & Mizoram, the expenses as approved by the Commission for the first
time of a year shall be considered as base O & M expenses for determination of O
& M expenses for subsequent years. Base year expenses shall be adjusted
according to variation in the rate of WPI per annum to determine expenses for

65
 subsequent years. PED has furnished WPI data vide Format .29 as stated here
under.

The Commission had approved Rs 1011 lakh for the FY 2010-11 towards R & M
expenses, which forms the basis for subsequent year expenses as per the WPI.

The R&M Expenses are worked out as stated below for projection for FY 2012-13

Table - 6.29: R&M Expenses

Previous Year Current Year Ensuing Year
Particular
FY 2010-11 FY 2011-12 FY 2012-13
WPI 11.23% 7.47% 9.26%
R&M Rs. 1011 lakh Rs. 1087 lakh Rs. 1187 lakh

The Commission, therefore, approves R & M expenses at Rs 1187 lakh for

the FY 2012-13 considering increase in WPI for FY 2011-12 and FY 2012-13.

6.15.3 Administration and General Expenses

PED has projected Administration and General expenses Rs 475.70 lakh for the
FY 2012-13
Table - 6.30: Administration and General expenses projected by PED
(Rs.
Lakh)
Ensuing
Sl. Previous Year Current Year
Category Year
No. FY 2010-11 FY 2011-12
FY 2012-13
1 Rent, Rates & Taxes 48.23 56.7 56.70
2 Regulatory Fees 19.00 14.20 15.00
3 Publication 0.20 5.00 5.00
4 Legal & Consultation charges - 1.00 15.00
5 Office Expenses 164.40 165.00 165.00
6 Advertisement 30.33 28.00 48.00
7 (Grant in Aid) Employee 46.00 46.00 46.00
welfare expenses
8 Other charges 102.93 125 125
Total 411.09 440.90 475.70
(Table 2.14 of the Petition)

PED has stated that they have accounted tentative expenditure on fees payable to
the Commission and to the consultants hired for implementation of various
improvement activities. Adjustments for actual expenses will be under taken at the
time of True-Up exercise for 2012-13. PED sought for approval of the projected
expenses for FY 2012-13.

Commission’s Analysis

66
 The expenses shall be admissible as per Regulation 98, (4), (c), (i), (ii), of the
JERC Regulations for Manipur & Mizoram. PED has included Grant in Aid under
Admin & General Expenses for Rs 46 lakh for previous year 2010-11 current year
2011-12 and Ensuing year 2012-13 which is to be shown as employees welfare
expenses.

The PED has not furnished audited accounts, for the previous year 2010-11. The
details for office expenses and other charges are not made available so as to
judge the nature of expenses.

The Commission approves Admin & General expenses at Rs 475.70 lakh for
FY 2012-13 as projected by PED.

6.16 Depreciation (Projected)

PED in its ARR petition has claimed depreciation at Rs 2546 lakh for the FY 2012-
13. The Asset wise breakup figures required in the Format No 11 were not
furnished and stated that the information is not available.

PED has stated that 90% funding of the infrastructure project costs are provided
by Govt. of India as a special assistance for the development of infrastructure in
North Eastern States and infrastructure is supported through grants, through
schemes of APDRP, RGGVY etc. PED also stated that due to unavailability of
complete data of the gross fixed assets, it is assumed that 90% of the total GFA is
being funded through grants and accordingly the proportionate amount to the
extent of 90% of the total depreciation computed as explained in the table 2.7 of
the petition. The PED has also not furnished the work wise projection of capital
expenditure for the FY 2012-13 in the table No 2.5 of the petition. But the
capitalization summary for the previous year, current year and ensuing year is
furnished as stated below together with capital expenditure during the financial
year vide table 2.6 of the petition.

Table - 6.31: Capital expenditure and capitalization

(Rs. lakh)
Previous Year Current Year Ensuing Year
Category
FY 2010-11 FY 2011-12 FY 2012-13
Capital expenditure incurred during the
12572.11 210.72 13829.32
financial year
Asset capitalization during the financial
681.09 257.46 12890.77
year
(Table 2.6 of petition)

PED, on further querry raised by the Commission have submitted the revised
capex and capitalization data vide letter dated 20/5/2012 as in the table below.

67
Table - 6.32 : Revised capex and capitalization

Cumulative
FY 2010-11 FY 2011-12 FY 2012-13
Particulars CAPEX till FY
(Actual) (Provisional) (Projected)
2010-11
Capital expenditure
59081.26 3941.63 4985.00 13495.27
incurred
Asset capitalisation
- 2963.27 2710.27 3585.29
during the financial year

Commission’s Analysis

The Commission had, in the Tariff order for FY 2010-11, held that the value of the
assets arrived by the PED with certain assumptions which are not considered in
the absence of the audited assets Registers and Asset wise depreciation to be
allowed in the ARR. The Commission, however, recognized the assets are in
place, the network is in operation and serving the consumers. The PED was
directed to furnish the detailed information in the prescribed formats in the next
ARR and tariff petition.

The Commission had in the tariff order for the FY 2010-11 considered opening
GFA as on 01/04/2007 at Rs 47063 lakh as per the transfer scheme in the final
report dated 20/11/2007 on Restructuring of Power Sector and validated as at
01/04/2010 duly accepting 10% of the proposed additions during the FY 2007-08,
2008-09, 2009-10 and after deducting the value of assets created with consumer
contribution and grants & subsidies received from Govt. of India.

PED Mizoram have, submitted the revised GFA and proposed additions during the
year FY 2012-13 vide their Letter dt 02.07.2012. The Commission considers the
revised GFA (updated) as on 01.04.2012 and computed provisionally. The GFA
has been segregated between Generation, Transmission and Distribution as
detailed below:

Table - 6.33: Depreciation for the FY 2012-13

(Rs. in lakh)
Asset
Sl. Opening GFA addition Assets as on Avg. Amount of
Item
No. 01.04.2012 during FY 31/3/2013 assessts depreciation
2012-13

68
 1 2 3 4 5 6 7
1 Generation 15006.16 19133.00 34139.16
2 Transmission 22707.17 457.06 23164.23
3 Distribution 30789.62 2478.36 33267.98
4 Buildings 3469.05 0 3469.05
Total 71972 22068.42 94040.42

Less consumers
347 347
contribution

Less Grants 39210 59071

Net GFA 32415 34622.42 33518.71 1769.79
Say 1770

The depreciation on average GFA is calculated at 5.28%,

Depreciation on the assets during the FY 2012-13 is considered at 10% of the

assets value since 90% of funds are stated to be provided by the Government of
India as grant.

The Commission approves depreciation at Rs. 1770 lakh for FY 2012-13.

I

6.17 Interest & Finance Charges

PED in its ARR petition has claimed Rs 137 lakh as interest and finance charges
for the FY 2012-13 in the table No. 2.15 of the petition. The source wise loan
details are furnished in the Format 15 in the petition which are depicted below:

Table - 6.34: Details of loans and interest

(Rs in lakh)
FY 2010-11 (Actuals)
Additions Repayment
Tendering Rate of Opening Closing Interest
Bank/Agency
during the during the Paid
Interest Balance Balance
year year
LIC 8% 1534 - 133 1401 123
REC 8.5% 6824 1604 2316 6112 1678
1801
FY 2011-12 (Estimated)
LIC 8% 1401 - 133 1268 107
REC 8.5% 6112 - 66 6046 51
199 7314 157
FY 2012-13 (Projected)
LIC 8% 1268 - 133 1135 96
REC 8.5% 6046 - 31 6015 41
164 7150 137
(Source: Format 15 of petition)

It is noted that no fresh loans were drawn by PED as per the ARR Format-15.
Commission’s Analysis

The loans and the interest claimed by PED is examined. The interest claimed on
REC loan for FY 2012-13 appears to be wrong. The interest on loans as computed
by the Commission is as given in table below:

Table - 6.35: Interest on loans approved by the Commission for FY 2012-13

(Rs. lakh)

69
 Additions Repayment
Loan Interest Opening Closing Interest
Sources
during the during the paid
Rate Balance Balance
year year
LIC 8.0% 1268 - 133 1135 96
REC 8.50% 6046 - 31 6015 513
Total Interest 609

The Commission approves interest on loan at Rs 609 lakh for FY 2012-13.

6.18 Interest on Working Capital

PED Mizoram in its ARR petition has projected Rs 324.72 lakh towards interest on
working capital for the FY 2012-13 @ 14.75% PLR as on the 01/04/2012.

Table - 6.36: Interest on working capital projected by PED

(Rs. lakh)
Sl. Previous year Current year Ensuing year
Category
No. FY 2010-11 FY 2011-12 FY 2012-13
1 Fuel cost (1 month) 2.39 0.23 0.23
2 Power purchase cost (1 month) 610.42 771.25 1131.33
3 O&M expenses (1 month) 901.05 979.03 1069.95
4 Total working capital 1513.86 1750.52 2201.52
5 Rate of interest on working capital 11.75% 14.75% 14.75%
i.e. SBI short term PLR on 1st April
of respective FY
6 Interest on working capital 177.88 258.20 324.72
(Table 2.16 of petition)

Commission’s Analysis

As per the Regulation 98 (6) (b) of JERC regulations the working capital has to be
computed on normative basis for Integrated utility as below:
(i) One month Fuel cost
(ii) One month Power purchase cost
(ii) One month O & M expenses
(a) Employees cost
(b) R & M expenses
(c) Administration & General Expenses.

Rate of Interest shall be short term prime lending rate of SBI as on the 1 st April of
the relevant year.

The working capital and Interest there on as computed by the Commission is

given in table below:

Table - 6.37: Interest on working capital approved for FY 2012-13

(Rs.
lakh)

70
 Sl. No. Particulars Amount
1. One month Fuel cost 0.23
2. One month Power purchase cost 1555.12
3. One month O & M expenses
(a) Employees cost 713.67
(b) R & M expenses 98.92
(c) Administration & General Expenses 39.64 852.23
4 Total working capital 2407.58
5 Interest on working capital at 14.75% 355.12

The Commission approves the interest on working capital at Rs. 355.12 lakh
for FY 2012-13.

6.19 Provision for Bad & Doubtful debts

PED has projected Bad & Doubtful debts at Rs 109.31 lakh for the FY 2012-13

Commission’s View

As per the Regulation 98 (5) of JERC regulations for calculation of ARR, a

provision of 1% of receivables shall be allowed towards Bad debts after the
Licensee gets the receivables audited. PED has not furnished any data on the
receivables with audit certificate.

In view of the above the Commission has not considered any provision
towards Bad & Doubtful debts for the FY 2012-13.

6.20 Return on Equity

PED in its ARR petition submitted that the Assets and Depreciation Registers are
yet to be maintained, proposals for engagement of consultant and auditors were
submitted to the Government for necessary approval. Besides this, fixed assets of
PED have been funded through various sources like contribution by State
Government, grants and aids through financial institutions under various schemes
like APDRP, RGGVY etc., where complete data of these grants were not available
with PED. Due to these reasons, and also in line with the decision made by the
Commission in the last tariff order 2010-11 for PED, para 5.23, the return on
equity is not considered while computing the ARR.

The Commission has not considered Return on equity for FY 2012-13.

6.21 Non-Tariff Income

PED Mizoram has projected Non-tariff income at Rs 180 lakh for the FY 2012-13.

71
 Commission’s Analysis

Non-tariff Income consists of Income from Meter rent. Late Payment Surcharge,
Theft/Pilferage of energy, Misc receipts, Misc charges, Wheeling charges, Interest
on staff loans & advances, Income from trading, excess on stock verification, Cost
of Tender specification, Interest on investments/Bank Deposits etc.

The PED has furnished the Non-tariff income in total at Rs 180 lakh without any
breakup of the nature of above said sources. PED shall maintain the books
indicating the nature of all receipts. The Commission assessed non-tariff income
considering the fact that the meter rent claimed for 200463 consumers minimum at
Rs.15 per month only would account for Rs. 360 lakhs for FY 2012-13.
Anticipating the income from late payment surcharge and other miscellaneous
charges, the non-tariff income would be more than Rs.400 lakhs

Therefore, Commission considers Non-tariff income at Rs. 400 lakhs for the
FY 2012-13.

6.22 Subsidy

PED in its ARR petition has submitted that the Government of Mizoram has
committed to provide tariff support / subsidy of Rs. 23479.10 lakh for FY 2012-13.
PED further stated that inspite of best efforts being rendered, the overall
performance could not be improved resulting the gap between receipt and
expenditure, the revenue from sale of power is not sufficient to meet the
expenditure; and as a result of this PED shall continue to depend upon the tariff
support / subsidy from the Government of Mizoram.

Commission’s Analysis

There has been a steep increase in power purchase cost and employee cost. The
Department has also not reduced the T&D losses to a reasonable level. On the
other hand all the consumers’ paying capacity is low and tariff shock shall be
avoided. The Commission considers the necessity for a Govt. support of Rs.
18765.76 lakhs as computed in clause 6.25.

6.23 Aggregate Revenue Requirement

Based on the above discussions, the Commission has approved the ARR for FY
2012-13 as given in table below:
Table - 6.38: ARR projected by PED and approved by the Commission for FY 2012-13
(Rs. lakh)

72
 Sl. No Particulars ARR projected by ARR approved by the
PED Commission
1 Cost of fuel 2.80 2.80
2 Cost of power purchase 17167.41 18661.43
3 Employee cost 8564.00 8564.00
4 R&M expenses 4311.40 1187.00
5 A&G expenses 475.70 475.70
6 Depreciation 2545.66 1770.00
7 Interest and finance charges 136.68 609.00
8 Interest on working capital 386.08 355.12
9 Provision for bad debts 109.30 -
10 Return on equity - -
11 Total expenditure 34590.39 31625.05
12 Less: Non-tariff income 180.00 400.00
14 Aggregate revenue requirement 34410.39 31225.05

6.24 Expected Revenue from existing tariff

The PED has furnished the revenue from existing tariff at Rs. 10892.00 lakhs for
FY 2012-13 as tabulated below:

Table – 6.39 : Revenue from Existing Tariff

(Rs. Crore)
S. Previous Year Current Year Ensuing Year
Particulars
N. (FY 2010-11) (FY 2011-12) (FY 2012-13)
1 Domestic (HT & LT) 28.49 52.34 77.52
2 Commercial (HT & LT) 4.95 6.93 5.90
3 Public Lighting (LT) 2.61 3.65 4.43
4 Irrigation & Agriculture (LT) 0.02 0.11 0.19
5 Public Water Works (HT & LT) 14.28 13.17 14.20
6 LT Industries 0.38 1.27 1.35
7 HT Industries 0.11 0.25 0.99
8 Bulk Supply (HT) 4.68 5.08 4.35
Total 55.53 82.80 108.92

On further querry by the Commission, the PED submitted again the slab-wise
number of consumers, connected load and energy sale for all categories of
consumers for the FY 2011-12 and FY 2012-13 (Projection) vide their letter dt.
30.04.2012. The PED vide their letter dt. 25.05.2012 furnished again the details of
slab-wise energy sales during FY 2011-12 (Provisional) and FY 2012-13
(Estimated) which are tabulated below. The PED stated that the estimated energy
sales for FY 2012-13 were worked out based on the actual energy sales during
2011-12 with average increase of 10 to 15%.

Table – 6.40 : Energy sale for the FY 2011-12 (Provisional)

Connected load at
S. No. of Energy Sales
Category of Consumers the end of the year
N. Consumers (MU’s)
(kW)
1 2 3 4 5
1 Kutir Jyoty 14047 1505.240 3.394
Domestic (LT) 157301 191290.520 167.287
Domestic (HT) 6 1040.000 0.2350

73
2 Commercial (LT) 4910 17639.927 17.975
Commercial (HT) 40 546.800 0.913
3 Public Lighting 763 1544.805 6.044
4 Irrigation & Agriculture (LT) 15 18.180 0.004
Irrigation & Agriculture (HT) 1 85.000 0.091
5 Public Water Works (LT) 10 518.250 0.231
Public Water Works (HT) 28 29102.620 36.052
6 Industrial (LT) 599 5203.180 0.554
Industrial (HT) 11 2199.200 0.329
7 Bulk Supply 213 25678.880 17.312
Total 177944 276372.602 250.42

Table – 6.41 : Energy sale for the FY 2012-13 (Estimated)

Connected load at
S. No. of Energy Sales
Category of Consumers the end of the year
N. Consumers (MU’s)
(kW)
1 2 3 4 5
1 Kutir Jyoty 17500 1806.29 5.00
Domestic (LT) 175000 210419.57 195.00
Domestic (HT) 10 1144.00 0.50
2 Commercial (LT) 6000 19403.92 21.00
Commercial (HT) 48 601.48 1.50
3 Public Lighting 897 1699.29 7.00
4 Irrigation & Agriculture (LT) 25 20.00 1.00
Irrigation & Agriculture (HT) 2 93.50 0.25
5 Public Water Works (LT) 11 570.08 0.50
Public Water Works (HT) 30 32012.88 42.00
6 Industrial (LT) 675 5723.50 1.00
Industrial (HT) 15 2419.12 0.50
7 Bulk Supply 250 28246.77 20.00
Total 200463 304160.39 295.25
Commission’s Analysis

The Commission has examined all relevant data furnished by the PED and the
category-wise sale are approved in Clause 6.6 and the revenue from the existing
tariff is assessed and furnished in the table below. While computing the revenue,
the Commission has considered the outside sales (UI) as part of sales revenue.

Table - 6.42: Expected revenue from existing tariffs approved by the Commission
(Rs. lakh)
Avg.
Approved Fixed Energy
Sl. No. Category Total Realization
sales (MU) Charges Charges
(Ps/kWh)
I Kutir Jyothi 8.00 20.99 97.17 118.16 148
1 Domestic          
a LT 222.00 631.27 5418.94 6050.21 273
b HT 0.50 4.12 15.00 19.12 382
2 Commercial          
a LT 22.00 116.42 805.37 921.79 419
b HT 1.50 4.33 57.00 61.33 409
3 Public Lighting 7.00 10.20 297.50 307.70 440
4 Irrigation & Agriculture          
a LT 1.00 0.05 11.00 11.05 111
b HT 0.25 0.34 2.75 3.09 124
5 Public Water Works          
a LT 0.50 3.42 20.00 23.42 468

74
 b HT 42.00 307.32 1596.00 1903.32 453
6 Industrial          
a LT 1.00 34.34 31.50 65.84 658
b HT 0.50 23.22 15.00 38.22 764
7 Bulk Supply 20.00 271.17 600.00 871.17 436
  Sub-Total 326.25 1427.20 8967.23 10394.43 319
8 Outside Sales (UI) 34.15 - 1024.50 1024.50 300
Total 360.40 1427.20 9991.73 11418.93

Detailed calculation statement is given in Annexure - I

6.25 Revenue gap with existing tariff

The Revenue Gap projected by PED is given in the table below:

Table - 6.43: Revenue gap with existing tariff projected by PED

(Rs.
lakh)
Sl.
Particulars Amount
No
1 Aggregate revenue requirement 34410.39
2 Revenue from existing tariff 9913.86
3 Gap (1-2) 24496.53

PED has stated in the tariff petition that the Govt. of Mizoram have committed to
provide an amount of 23479.10 lakh as Tariff Support / subsidy to meet the
revenue Gap for the FY 2012-13.

PED has proposed tariff increase to get an additional revenue of Rs. 1017.43 lakh
only and requested the Commission to provide Rs. 10,000/- lakh as Regulatory
Asset and balance Rs. 13479.10 lakh as subsidy from State Government as
shown in the table below:

Table - 6.44: Net Revenue gap in FY 2012-13 after subsidy proposed by PED

(Rs. lakh)
Sl. Proposed
Particulars
No. FY 2012-13
1 Revenue gap before subsidy 24496.53
2 Additional revenue from proposed tariff 1017.43
3 Balance to be recovered 23479.10
4 Regulatory Asset 10000.00
5 Subsidy from State Government 13479.10

Commission’s Analysis and Decision:

The Commission has computed the revenue at existing tariffs including the sales
under UI at Rs. 11418.93 lakhs as shown in table 6.42 above.
The Commission has arrived at the revenue gap as below:

75
Table - 6.45
(Rs. lakhs)
Approved by
Sl.
Particulars Commission
No.
FY 2012-13
1 Net Aggregate Revenue Requirement 31225.05
2 Revenue from existing tariffs including sales under UI 11418.93
3 Revenue Gap 19806.12

PED’s proposals on Govt. subsidy amount projected in the above two paras are
contradicting. The gap to be realized is larger. Full recovery of the gap as subsidy
of Rs. 19806.00 lakhs by the state Government will have adverse impact on the
State’s finances and affects the other sectors. The Commission, therefore,
proposes to revise the tariffs with moderate increase as given in the tariff
schedule. The Commission has not considered any regulatory asset. The revenue
from the revised tariffs works out to be Rs. 11434.79 lakhs as given in Annexure-
II. The net revenue gap, after considering the additional revenue due to revision of
tariffs which works out to Rs. 1040.36 lakhs, would be Rs. 18765.76 lakhs as
given in table below. This amount has to be met from the subsidy from the State
Government.

Table - 6.46: Net Revenue requirement and gap with revised tariffs for FY 2012-13
(Rs lakh)
Sl. Projected by Approved by the
Particulars
No PED Commission
1 Net revenue requirement 34410.39 31225.05
Revenue from sale of power with
2 9913.86 11418.96
existing tariff including UI sales
3 Addl. Revenue from proposed tariffs 1017.43 1040.36
4 Gap before subsidy (1-2-3) 24496.53 18765.76
5 Government subsidy 23479.10 18765.76
6 Energy sale (MU) 311.85 326.25
7 Average cost (Rs,/kWh) before subsidy 11.03 9.57
8 Average cost (Rs,/kWh) after subsidy 3.51 3.50

The Commission accordingly approves revenue from revised tariff as Rs.

11434.79 lakhs with the sale of 326.25 MU within the State (Detail calculation is
given in Annexure – II). The average realization with the sale of 326.25 at the
existing tariff is Rs. 3.19 per unit and at the approved tariff for 2012-13 is Rs. 3.50
per unit. This increase in average realization per unit is 9.72% only.

PED should improve its performance by way of reduction of losses, proper billing
and revenue realization and reducing the costs.

76
 7. Transmission and Wheeling Charges

7.1 Transmission Charges

PED being an integrated utility is to file petition for determination of transmission

charges. Data made available to the Commission is also not adequate for fixing
transmission tariff on suo-motu. The Commission attempted to fix the transmission
charges based on the expenses approved in this Tariff Order by segregating the
fixed costs of Generation, Transmission and Distribution in the ratio of Gross Fixed
Asset. This even was not possible as there was inconsistencies in data. The
Commission directed to take up the issue separately. PED is accordingly advised

7.2 Wheeling Charges

Separate petition is also to be filed by the PED for determination of the wheeling
charges for implementation of open access in the State. The Commission

77
 attempted to fix the wheeling charges on suo-motu based on the expenses
approved in this Order by apportioning the fixed cost. It was found difficult from the
data available. PED is accordingly directed to file a petition for determination of
wheeling charges.

8. Directives

8.1 General Status and Compliance of Directives issued in the Tariff Order
for FY 2010-11

Directive 1: Submission of Next ARR

It was directed to file next ARR before 30th November every year.

Compliance Status
PED has not filed ARR & Tariff petition for FY 2011-12 within the prescribed date.
The ARR & Tariff petition for FY 2012-13 was submitted on 21.02.2012 with a
delay.

Commission’s comments

Direction is not complied with.

78
Directive 2: Annual Statement of Accounts

Compliance Status
PED Mizoram in their letter No. T-23011/02/10–E-in-C (P) Com/18 Dated Aizawl
22.05.2012 has submitted that a proposal for engagement of Consultant to
prepare books of Accounts and Assets Register was submitted to Government of
Mizoram for sanction of financial commitment vide letter No. T.23002/11-EC (P)
Com/47 dt. 30.01.2012, which is stated to be under process.

Commission’s comments
The Directive was issued in the Tariff order 2010-11 in January 2011. The PED
has initiated action after one year. Non-compliance of the Directive in time would
result in non recovery of the Costs and Charges at actuals through the tariffs,
which ultimately cause more burden to the Government for providing tariff
support / subsidy to the utility. PED shall expedite for full Compliance. Direction is
complied partially.

Directive 3: Preparation of Assets & Depreciation Registers / Records

Compliance Status

PED Mizoram in their letter No. T-23011/02/10 – E-in-C (P) Com/18 Dated Aizawl
the 22.05.2012 has submitted that a proposal for engagement of Consultant to
prepare books of Accounts and Assets Register was submitted to Government of
Mizoram for sanction of financial commitment vide letter No. T.23002/11-EC (P)
Com/47 dt. 30.01.2012, which is stated to be under process.

Commission’s comments

The Directive was issued in the Tariff order 2010-11 in January 2011. The PED
has initiated action after one year. Non-compliance of the Directive in time would
result in non recovery of the Costs and Charges at actuals through the tariffs,
which ultimately cause more burden to the Government for providing tariff
support / subsidy to the utility. The direction is partially complied. PED shall
expedite for full Compliance.

79
Directive 4: Management Information System
Compliance Status

PED has submitted that a Committee has been constituted to study the existing
Information Management System and propose for upgradation / revision if
necessary as required for reporting the data to JERC (M&M) and CEA.

Commission’s comments

PED shall ensure the data updation as required for Regulatory system and also
make use of data for Management review at E-in-C’s level and submit the latest
position. Direction is not complied with.

Directive 5: Pilferage of Energy

Compliance Status

PED has stated that Government of Mizoram has set-up special courts at two
locations to cover northern and southern Mizoram stationed at Aizawl and Lengpui
vide letter No. B-16013/28/2006 – P&E dt 27.02.2012 for speedy trial of Energy
theft cases. It is also stated that special inspection squads are established to
check illegal tapping, tampering of Meters and un-authorised use of energy.

Commission’s comments

PED has been sustaining huge T&D losses due to non fixing of high accuracy
energy meters for high consumption categories, non-replacement of dysfunctional
meters and, at the same time theft and pilferage of energy. Theft and pilferage of
energy shall be effectively dealt. Commission directs the PED to report the
progress quarterly. The direction is complied partially.

Directive 6: Metering of Consumer installations / Replacement of non-

functional defective meters and providing meters to un-metered connections

Compliance Status

PED has submitted that no new services are being released without correct
energy meter. The consumers with own meters were informed to replace the
defective meters. Due to funds crunch the consumers with own meters were
requested to provide their own healthy meters, where meter rent is not being
charged.

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Commission’s comments

PED has not taken up adequate measures for 100% metering. PED shall ensure
100% metering by March, 2013 and compliance reported. Direction not complied
with.

Directive 7: Contribution by Consumers for Capital investment

Compliance Status

PED has submitted that local consumers extend co-operation and service to the
Department for erection of Electric poles stringing lines by providing their plot of
land free of cost for installation of DTs and HT & LT lines. But the volume of
consumer contribution could not be quantified in terms of monetary value.

Commission’s comments

Section 46 of Electricity Act 2003 provides for, Recovery of Expenditure

reasonably incurred by the Licensee (PED Mizoram) in providing any electric line
or electrical plant to any person requiring supply of electricity in pursuance of
Section 43 of Electricity Act 2003.

Thus the expenditure so recovered will be classified as Consumer’s Contribution

towards Capital investment. The costs so recovered as per the Reg. 3.5 of JERC
(electricity Supply Code) Regulation 2010 shall be capatilised after the service
connections released. The total sum recovered, and capitalized during the year,
will not be considered for calculation of Depreciation on assets during that year
and the sum will be reduced while calculating the interest on Debt Capital. Action
may be taken for recovery of such expenditure from the consumers and maintain
such details.

PED shall maintain the books of accounts with specific classification as required
for ARR Format-23. Direction is not complied with.

Directive 8: Transmission and Distribution Losses

Compliance Status

PED Mizoram has stated that the under sized conductors being replaced with AB
cables in Urban areas like Aizawl & Lunglei in order to minimize the T&D losses.

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 Commission’s comments

Commission directed to get energy audit conducted by providing meters in at

132kV, 33 kV and 11 kV feeders and distribution transformers to identify the high
loss areas and take appropriate measures to reduce the loss. PED has not
complied with the direction. The loss level in still as high as 39%. PED Mizoram
shall expedite the Measures initiated like replacement of dysfunctional meters,
providing high accuracy energy meters, while continuing the process of providing
AB cables.

Directive 9: Consumers bills

Compliance Status

PED has submitted that implementation of spot billing system could not be
achieved with the existing staff & infrastructure. Focus being kept on introducing
the spot billing with the APDRP scheme funds.

Commission’s comments

As per Section 56 (1) of electricity Act 2003, the PED may allow 15 days time to
consumers for Payment of Charges for supply of Electricity and in lieu of the
notice the same may be displayed on the monthly bills. PED Mizoram may
consider out sourcing the activity of spot billing by which the collection of
Consumer bills will be realized within 15 days of issue of bill. Many utilities are
implementing spot billing and found beneficial in avoiding delays in taking
readings, preparation of manual bills and serving of such bills.. PED may review &
analyse the cost effect benefits for implementation of the spot billing system and
take action on priority. The existing system of billing entails delay in collection of
revenue by two months for the energy consumed. The direction is not complied
with.

Directive 10: Investment and Capping of Capital Expenditure

Compliance Status

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PED Mizoram has submitted the investment plan of 12th Five year plan, wherein
phasing of works programme in FY 2012-13 to FY 2016-17 is featured.

Commission’s comments

The investment plan for the FY 2012-13, as per the document is Rs. 183.59 crore
covering 22 Hydel Projects (spill over works) new works, R&M of existing projects,
3 Nos. Transmission schemes (New works), 7 Nos Transmission line works and 7
Nos Transformation works. The plan envisage the Distribution works which includes
erection of 33 kV lines DTRs Metering etc. The projected plan seems to be
Herculean task since achievement of physical progress is stated to be subject to
fund tie up. PED may consider realistic investments in the FY 2012-13. Direction is
complied partially.

Directive 11: High Employee Cost of the Department

Compliance Status

PED has submitted that initially the Department was not setup to suit a commercial
entity in nature. Further stated that service matters etc. are at par the other
Government Department employees. Therefore the Department could not change
its present function by its own. Due to the above circumstances, the employee cost
cannot be reduced at this instance.
Commission’s comments

The total No. of employee at the end of March 2011 is 4642. Necessity for such
huge strength may be critically examined so as to reduce high costs on continuous
basis. Direction is not complied with.

Directive 12: Metering of H.T services with MD Indicators

Compliance Status

PED has stated that MDIs are introduced in some high consumption consumers like
ICFAI – office, Aizawl, Zoological Garden, Municipal Council Office. HT Consumers
are being encouraged to provide MDIs.

Commission’s comments

HT consumers are high revenue yielding units. For such consumers PED can
procure and provide meters instead of requesting consumers for procurement. Cost

83
 of metering equipment can be compensated by increase in revenue. Direction is
partially complied.

Directive 13: Display of Government tariff support on the Consumers bills

Compliance Status

PED has submitted specimen copies of the Consumer bills wherein it is displayed
as 53.50% Tariff subsidy being given by the Government of Mizoram.

Commission’s comments

Direction is complied.

Directive 14: Fixation of last date of payment

Compliance Status

PED stated that the Due Date of Payment and Last Date of Payment were treated
as same. As such the due date of payment is fixed as due date for disconnection
process.

Commission’s comments

As per Section 56 (1) of Electricity Act 2003, the PED may allow 15 days time to
consumers for payment of Charges for supply of Electricity and in lieu of the notice
the same may be displayed on the monthly bills.

The PED is allowing the consumers for payment of Electricity bills 45 days
(approximately) from the date of issue of the bill (As per the specimen copy of the
bills submitted for the month of April 2012) whereas the Generators / suppliers of
Power to PED are claiming interests at 1.25% of the bill amount for delay beyond
stipulated one month. PED may consider and initiate expeditious action on this
Directive, which will improve cash flow crunch. Action taken shall be reported within
three (3) months of the Order.

8.2 Fresh Directives

Directive 1: Contract Demand

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With the introduction of two-part tariff in the Tariff Order of 2010-11 the consumers
feel the impact of connected load in the Electricity bill is high. The PED stated that
connected load and contract demand are the same in Mizoram. If so, the
Commission has observed that the contract demand is high. PED is therefore
directed to reassess the contract demand by December, 2012 and submit a report.

Directive 2 : Timely Submission of Tariff Petition

PED is directed to file Retail Tariff Petition for FY 2013-14 by 30th November, 2012.

Directive 3 : Restructuring of Staff

PED has stated that the number of employee as on 31st March, 2012 is 4575. It is
very high. The Department however, has pleaded shortage of staff for poor
performance. The Commission has observed that deployment of the existing staff is
not rational. PED is directed to prepare a restructuring plan by 31 st December, 2012
and submit a report.

Directive 4 : Tariff Petition for Small Hydro Power Stations

The State has 8 (Eight) Small Hydro Power Stations with installed capacity of 1 MW
and above. Generation Tariff of these stations need to be determined. PED is
directed to file the Tariff Petition for these projects by 31st January, 2013.

Directive 5 : Transmission Charges

Transmission charges are to be determined for implementation of open access to

the State. As stated in Chapter – 7 of this Order the PED is directed to file Tariff
Petition for Transmission by February, 2013.

Directive 6: Wheeling Charges

The need for fixing of the wheeling charges for implementation of open access to
the State has been explained in the Chapter – 7 of this Order. PED is directed to
file Petition for wheeling charges by 31st March, 2013.

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 Directive 7: Review Petition

The Commission is to undertake review with next Tariff. PED is directed to submit
review petition along with the next Tariff Petition.

9. Tariff Principles and Design

9.1 Background
9.1.1 The Commission in determining the revenue requirement of PED, Mizoram for the
year 2012-13 and the retail tariff has been guided by the provisions of the
Electricity Act, 2003, the National Tariff Policy (NTP), Regulations on Terms and
Conditions of Tariff issued by the Central Electricity Regulatory Commission
(CERC) and Regulations on Terms and Conditions of Tariff notified by the JERC.
Section 61 of the Act lays down the broad principles, which shall guide
determination of retail tariff. As per these principles the tariff should “Progressively
reflect cost of supply” and also reduce cross subsidies “within the period to be
specified by the Commission”. The Act lays special emphasis on safeguarding
consumer interests and also requires that the costs should be recovered in a
reasonable manner. The Act mandates that tariff determination should be guided
by the factors, which encourage competition, efficiency, economical use of

86
 resources, good performance and optimum investment.

The NTP notified by Government of India in January 2006 provides

comprehensive guidelines for determination of tariff as also working out the
revenue requirement of power utilities. The Commission has endeavored to follow
these guidelines as far as possible.

9.1.2 NTP mandates that the Multi-Year-Tariff (MYT) framework be adopted for
determination of tariff from 1st April 2006. However the Commission is not in a
position to introduce MYT Regime in the State mainly because of lack of requisite
and reliable data with the Power and Electricity Department. The present MIS and
regulatory reporting system of the PED is very inadequate for any such exercise at
this stage. There has been no study to assess voltage wise losses in the absence
of metering of all feeders, distribution transformers and consumers. Technical
and commercial losses are yet to be segregated and quantified voltage wise. The
Commission has issued directives to the PED in the Tariff Order 2010-11 to chalk
out action plan for reduction of T&D losses for both technical and non-technical,
maintain correct datas energy audit and submit to the Commission by June 2011
which are not complied with. Under these conditions it would not be practicable to
implement the MYT framework this year. The Commission taking into account all
factors, has decided to introduce MYT in due course, as soon as the data is made
available.

9.1.3 The mandate of the NTP on cross subsidy is that tariff should be within plus /
minus 20% of the average cost of supply by 2010-11. This could not be achieved
due to high cost of power, low paying capacity of the consumers and lack of
industrialization. The PED has not furnished the voltage-wise cost of supply. A
directive has been issued in this order to build up data to arrive at cost of supply at
various voltage levels etc. Hence, in working out the cost of supply, the
Commission has gone on the basis of average cost of supply in the absence of
relevant data for working out consumer category wise cost of supply. However in
this tariff order an element of performance target has been indicated by
maintaining the set target for T&D loss reduction for the year 2012-13 and 2013-
14 in the tariff order of 2010-11. This guides the PED for better performance by
reduction of loss level, which will result in substantial reduction in average cost of
supply. The existing and proposed tariff of PED is two-part tariff. The Commission
introduced two-part tariff FY 2010-11.

9.1.4 Section 8.3 of National Tariff Policy lays down the following principles for tariff

87
design:

1. In accordance with the National Electricity Policy, consumers below

poverty line who consume below a specified level, say 30 units per Month,
may receive a special support through cross subsidy. Tariffs for such
designated group of consumers will be at least 50% of the average cost of
supply. This provision will be re-examined after five years.

2. For achieving the objective that the tariff progressively reflects the cost of
supply of electricity, the SERC would notify the roadmap, within six Months
with a target that latest by the end of the year 2010-11 tariffs are within ±
20% of the average cost of supply. The road map would have intermediate
milestones, based on the approach of a gradual reduction in cross subsidy.

For example if the average cost of service is Rs.3 per unit, at the end of
year 2010-11 the tariff for the cross subsidized categories excluding those
referred to in para-1 above should not be lower than Rs. 2.40 per unit and
that for any of the cross subsidizing categories should not go beyond
Rs.3.60 per unit.

3. While fixing tariff for agricultural use, the imperatives of the need of using
ground water resources in a sustainable manner would also need to be
kept in mind in addition to the average cost of supply. The tariff for
agricultural use may be set at different levels for different parts of the State
depending on the condition of the ground water table to prevent excessive
depletion of ground water.”

4. Regulation 16 of JERC (Terms and Conditions for Determination of

Tariff) Regulations specifies.

(a) The cross subsidy for a consumer category means the difference
between the average per unit rate based on tariff schedule of the
Commission for that Category and the combine average cost of
supply per unit expressed in percentage terms as a portion of the
combined average cost of supply.

(b) In the first phase, the Commission shall determine the tariff, so that
it progressively reflects the combined average cost of supply of
electricity and also reduce cross-subsidies within a reasonable
period. In the second phase, the Commission shall consider

88
 moving towards category wise cost of supply as a basis for
determination of tariff.

9.1.5 NEP aims at increased access to electricity, supply of reliable and quality power at
reasonable rates, minimum lifeline consumption, financial turnaround of consumer
interest. The Commission has considered factors as far as possible which aim at
achieving the objectives of NEP while determining the revenue requirement of the
PED and designing the retail tariff for its consumers. The Commission considered
for special treatment to Kutir Jyoti connection and agricultural sector. It has also
aimed at to raise the per capita consumption of the State from the existing level of
270 kWh to 350 kWh by the end of 2015. The Commission endeavors that the
tariff progressively reflects cost of supply in a shortest period and the government
subsidy is reduced gradually. The tariff has been rationalized with regards to
inflation, paying capacity and avoid tariff shock.

9.2 Tariff Proposed by PED and Approved by the Commission

9.2.1 Tariff Categories

In the ARR and Tariff Petition of 2012-13, PED has not proposed any changes
in the existing categories of consumers and tariff structure.

The Commission considers retaining the existing categories as stated below:

1. (a) Kutir Jyothi

(b) Domestic LT
(c) Domestic HT

2. (a) Commercial LT
(b) Commercial HT

3. Public Lighting

4. (a) Irrigation & Agriculture LT

(b) Irrigation & Agriculture HT

5. (a) Public Water Works LT

(b) Public Water Works HT

6. (a) Industrial LT
(b) Industrial HT

7. Bulk Supply HT

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9.2.2 Existing & Proposed Tariff

PED in its tariff petition for FY 2012-13 has proposed for revision of the
existing two part retail tariffs to various categories of consumers to earn
additional revenue of Rs.. 1017 lakhs to meet the gap partially as shown below:

The PED has proposed tariff revision in energy charges only. The proposed
increase in energy by the PED would result in an overall increase of about 10% in
tariffs, and the increase across the categories varying from 9 % to 14 %. The
summary of the tariff proposal by PED for FY 2012-13 is tabulated below:

Table- 9.1: Existing V/s Proposed tariff

Existing Proposed by PED
Sr. Category Fixed Charges Energy Fixed Charges Energy
No. (Rs./Conn/Conn Charge (Rs./Conn/Conn Charge
ected Load) (Rs./kWh) ected Load) (Rs./kWh)
1 2 3 4 5 6
1 Kutir Jyoti        
i) 1 - 15 10 0.90 10 1.00
ii) 16 - 30 10 1.05 10 1.20
iii) > 30 10 1.50 10 1.70
2 Domestic        
i) 1 - 50 25 1.50 25 1.75
ii) 51 - 100 25 1.85 25 2.10
iii) 101 - 200 25 2.50 25 2.80
iv) > 200 25 3.50 25 3.90
3 Domestic HT 30 3.00 30 3.30
4 Commercial        
i) 1 - 100 50 2.30 50 2.60
ii) 101 -200 50 3.60 50 4.00
iii) > 200 50 4.00 50 4.45
5 Commercial HT 60 3.80 60 4.20
6 Public Lighting 50 4.25 50 4.75
7 PWW LT 50 4.00 50 4.40
8 PWW HT 80 3.80 80 4.20
9 Agl LT 20 1.10 20 1.25
10 Agl HT 30 1.10 30 1.25

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 11 Industrial LT        
i) 1 - 400 50 3.00 50 3.40
ii) > 400 50 3.50 50 4.00
12 Industrial HT 80 3.00 80 3.30
13 Bulk Supply HT 80 3.00 80 3.30

The Commission after detailed analysis and prudent scrutiny of the aggregate
revenue requirement filed by the PED, has arrived at a more realistic revenue
requirement.

9.2.3 Tariff Approved by the Commission

Having considered the petition of Power and Electricity department (PED), Aizawl
for approval of Annual Revenue Requirement (ARR) and determination of Retail
Tariff for supply of energy and having approved the Annual Revenue Requirement
(ARR) vide Table 6.38 of Chapter - 6 the Commission approves two part retail tariff
duly segregating LT & HT categories with overall an increase in tariff by 9.72% as
shown below:

Table – 9.2 : Category wise Tariff approved by the Commission for FY 2012-13

Existing Approved
Sr. Fixed Charges Energy Fixed Charges
Category Energy Charge
No. (Rs./Conn/Con Charge (Rs./Conn/Conn
(Rs./kWh)
nected Load) (Rs./kWh) ected Load)
1 2 3 4 5 6
1 Kutir Jyoti        
i) 1 - 15 for all units 10 0.90 10 1.00
ii) 16 – 30 for all units 10 1.05 10 1.20
iii) > 30 for all units 10 1.50 10 1.70
2 Domestic    
i) 1 - 50 for all units 25 1.50 25 1.70
ii) 51 – 100 for all units 25 1.85 25 2.10
iii) 101 - 200 for all units 25 2.50 25 2.80
iv) > 200 for all units 25 3.50 25 3.90
3 Domestic HT 30 3.00 30 3.30
4 Commercial    
i) 1 - 100 for all units 50 2.30 50 2.60
ii) 101 -200 for all units 50 3.60 50 4.00
iii) > 200 for all units 50 4.00 50 4.45
5 Commercial HT 60 3.80 60 4.20
6 Public Lighting 50 4.25 50 4.75
7 PWW LT 50 4.00 50 4.40
8 PWW HT 80 3.80 80 4.20
9 Irrigation & Agri LT 20 1.10 20 1.20

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 10 Irrigation & Agri HT 30 1.10 30 1.20
11 Industrial LT    
i) 1 - 400 for all units 50 3.00 50 3.00
ii) > 400 for all units 50 3.50 50 3.50
12 Industrial HT 80 3.00 80 3.30
13 Bulk Supply HT 80 3.00 80 3.30

Note: The above Table depicts comparison of fixed/demand charges and

energy charges only. For all unit means the consumers shall be billed
for the whole unit consumed at the corresponding rate fixed for the slab

Details are given in the Tariff Schedule in Appendix.

9.2.4 Common Items

PED has proposed for the same rates which are in force as approved in Tariff
Order of 2010 -11. The Commission has approved it as given in Tariff Schedule in
Appendix.

9.2.5 Miscellaneous Charges

PED proposed for new rates of charges in many of the Miscellaneous items as
against the rates approved by the Commission in the Tariff Order of 2010-11. The
Commission has approved the same rates for all miscellaneous items of services
as proposed by PED as given in the Tariff Schedule in Appendix.

This order shall come into force from 01-08-2012 and shall remain effective
till revised / amended by the Commission. The Order shall be given wide
publicity by the petitioner for information of the general pubic.

Member Chairperson

92
Place: Aizawl
Date: 25th July, 2012

APPENDIX

Tariff Schedule

1. LT Supply

Category - 1: Supply for Kutir Jyoti Scheme Connection Domestic Consumers

Applicability: Applicable to all household who has been given connection under Kutir
Jyoti Scheme or similar connection under any scheme of the State Govt. or Central
Govt. for the benefit of poorer section. If the total consumption in three Months exceed
45 kWh, the connection should be converted to Category-2 as per existing norms of KJS
unless supersedes by other new norms.

System of Supply:
AC 50 cycle, single phase, 230 V, initially single light point connection which can be
extended by one or two light points or as per the norms specified by competent
authority from time to time.

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A. Metered Supply: The total energy consumed shall be charged at the corresponding
slab rate as given below:

Energy/Variable Charges Fixed / Demand Charges

Consumption Range
( `/kWh/Month ) (`/Conn./Month)
a) 1 - 15 kWh for all units 1.00 10
b) 16 - 30 kWh for all units 1.20 10
c) Above 30 kWh for all units 1.70 10

Note: For all units mean the consumers shall be billed for the whole unit consumed at
the corresponding rate fixed for the slab.

B. Un-metered Supply:

(1) Energy Charges: Energy consumed shall be computed based on contracted

demand as per the procedure prescribed in the JERC Supply Code
Regulations-2010 and billed at appropriate slab rate of the metered tariff

(2) Fixed / Demand Charges: `10/connection/Month

Category - 2: Supply for Domestic Light and Power

Applicability: The Tariff is applicable to all supplies for general domestic purposes such
as Light, Fans, Heating devices, Television, VCR/VCP, Radio, Refrigerator, Air-
conditioner, lift motors and all others appliances only for bona-fide residential used. This
will also cover consumption of energy supplied for Government owned Educational and
Research Institutions, Charitable Institutions, Government owned Hospital and
Dispensaries, Farm houses, Religious premises like Churches, Temples, Mosques,
religious offices and any other institution, Offices not engaged in any commercial activity
or private gain, excluding those consumers specially covered under other Categories of
this Tariff.

System of Supply:
(a) AC 50 cycles, single phase, 230 V upto 4 kW connected load.

(b) AC 50 cycles, three phase, 400- V above 4 kW and below 50 kW of

connected load.

A. Metered Supply: The total energy consumed shall be charged at the

corresponding slab rate as given below:

94
 Energy/Variable Charges Fixed / Demand Charges
Consumption Range (`/kWh/Month) (`/kW/Month of
contracted load)
a) 1 - 50 kWh for all units 1.70 25
b) 51 - 100 kWh for all units 2.10 25
c) 101 - 200 kWh for all units 2.80 25

d) Above 200 kWh for all units 3.90 25

Note: For all units mean the consumers shall be billed for the whole unit consumed at
the corresponding rate fixed for the slab.

B. Unmetered Supply:
(1) Energy Charges: Energy consumed shall be computed based on contracted
demand as per the procedure prescribed in the JERC for M&M (Electricity
Supply Code) Regulations, 2010 and billed at corresponding rate of metered
tariff
(2) Fixed / Demand charges: ` 30/kW/Month of contracted load.

Note: Mixed domestic and commercial establishment shall be treated as commercial

establishment if the load on commercial side is more than 200 W or 10% of the total
connected load.
Category - 3: Supply of Commercial Purposes
Applicability: This tariff is applicable to all lights, all types of fans, heating devices,
Television, VCR/VCP, Radio, Refrigerator, Air Conditioner, lift motors, pump and all
other appliances for the purpose of private gain including other small power. This
category includes supply of power to all establishment and installations of commercial
offices, Government undertakings, Public Sector undertakings, Commercial houses,
Markets, Optical houses, Restaurants, Bars, Tailoring shops not using motive power,
Refreshment and Tea Stalls, Show-Cases of advertisement, Theatres, Cinemas, Hotels,
Lodging and Boarding, Private Nursing Homes and Hospitals, Religious Hospitals,
Private run Schools and Hostels and Boarding facilities, any other educational
institutions demanding fees, Photographic studio, Battery charging units, Repair
Workshops, and Newspaper Press (Newspaper Printing press only), Petrol pump, etc.
and other purposes which are not covered by any of the categories of this tariff order the
connected load of which is upto 50 kW.

Note: Mixed domestic and commercial establishment shall be treated as commercial

establishments if the load on commercial side is more than 200W or 10% of the total
connected load.

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System of Supply:

(a) AC 50 cycle, single phase, 230 V upto a connected load of 4kW.

(b) AC 50 cycle, three phases, 400 V above 4kW upto 50 kW contracted

demand.

A. Metered Supply: The total energy consumed shall be charged at the corresponding
slab rate as given below:

Energy/Variable Charges Fixed / Demand Charges

Consumption Range (`/kWh/Month) (`/kW/Month of
contracted load)
a) 1 - 100 kWh for all units 2.60 50
b) 101 - 200 kWh for all units 4.00 50

c) Above 200 kWh for all units 4.45 50

Note: For all units mean the consumers shall be billed for the whole unit consumed at
the corresponding rate fixed for the slab.

B. Un-metered Supply:
(1) Energy Charges: Energy consumed shall be computed based on contracted
demand as per the procedure prescribed in the JERC for M&M (Electricity
Supply Code) Regulations, 2010 and billed at corresponding rate of metered
tariff.

(2) Fixed / Demand Charges: ` 60/kW/Month of contracted load.

Category - 4: Public Lighting Supply

Applicability: Applicable to Public Street Lighting System in municipality, Town,
Committee, Sub-Town/Village, etc. including Signal system and Road and Park lighting
in areas of Municipality Town/Committee, Sub-Town/Village, etc.

System of Supply:
(a) AC 50 cycles, single phase, 230 V,
(b) AC 50 cycles, three phases 400 V.
A. Metered Supply:

Consumption Energy/Variable Charges Fixed / Demand Charges

96
 (`/kWh/Month)
Range (`/kW/Month of contracted load)
a) All units 4.75 50

B. Unmetered
Supply:
(1) Energy Charge: Energy consumed shall be computed based on contracted
demand as per the procedure prescribed in the JERC for M&M (Electricity
Supply Code) Regulations, 2010 and billed at corresponding rate of metered
tariff.

(2) Fixed Demand Charges: `50/kW/Month of connected load.

Category - 5: Public Water Works

Applicability: Applicable to all public water supply system.
System of Supply:
(a) AC 50 cycles, single phase, 230 V upto load of 4 kW.
(b) AC 50 cycles, three phases, 440 V above 4 kW upto 50 kW.

A. Metered Supply:

Energy/Variable Charges Fixed / Demand Charges

Consumption Range (`/kWh/Month) (`/kW/Month of
contracted load)
a) All units 4.40 50

B. Unmetered Supply:

(1) Energy Charge: Energy consumed shall be computed based on contracted

demand as per the procedure prescribed in the JERC for M&M (Electricity
Supply Code) Regulations, 2010 and billed at corresponding rate of
metered tariff
(2) Fixed / Demand Charges: `50/kW/Month of contracted load.

Category - 6: Supply for Irrigation & Agricultural Purpose

Applicability: This tariff is applicable to irrigation/pumping for agricultural purpose
only.
System of Supply:

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 (a) AC 50 cycles, single phase, 230 V upto 4 kW.

(b) AC 50 cycles, three phases, 400 V upto 50 kW.

A. Metered Supply:

Energy/Variable Charges Fixed / Demand Charges

Consumption Range ( `/kWh/Month ) (`/kW/Month of
contracted load)
a) All units 1.20 20

B. Unmetered Supply:

(1) Energy charges: Energy consumed shall be computed based on

contracted demand as per the procedure prescribed in the JERC for M&M
(Electricity Supply Code) Regulations, 2010 and billed at corresponding
rate of metered tariff
(2) Fixed / Demand Charge: `20.00 per /kW/HP/Month of contracted load.

Category - 7: Industrial Power Supply

Applicability: Applicable to all Industrial power consumers with demand of power upto
50 kW which are not covered by Category No. 3 (Supply of Commercial Purposes), such
as steel fabrications, motor body builders, power handloom industry, poultry farming,
pisciculture, prawn culture, floriculture in green houses, mushroom production, cold
storage unit of pisciculture, agriculture, horticulture and any other type of industry where
raw material is converted into finished products with the help of electrical motive power,
printing press, etc. This will include domestic or commercial within the industrial
complex.

System of Supply:
AC 50 cycles, single/three phase, 230/400 V.

A. Metered Supply: The total energy consumed shall be charged at the corresponding
slab rate as given below:

Energy/Variable Charges Fixed / Demand Charges

Consumption Range (`/kWh/Month) (`/kW/Month of contracted
load)
a) 1 - 400 kWh for all units 3.00 50
b) Above 400 kWh for all units 3.50 50

98
Note: For all units mean the consumers shall be billed for the whole unit consumed at
the corresponding rate fixed for the slab.

B. Unmetered Supply:

(1) Energy charges: Energy consumed shall be computed based on contracted

demand as per the procedure prescribed in the JERC for M&M (Electricity
Supply Code) Regulations, 2010 and billed at corresponding rate of metered
tariff.

(2) Fixed Charges: ` 60.00/kW/Month of contracted load.

Category – 8: Temporary Power Supply

Applicability:

(a) For marriage, puja, religious/public function/gathering and all others domestics,
festivals/ ceremony purposes which are of temporary nature upto 30 kW of
connected load for a period not exceeding 180 days.

(b) For commercial and Industrial purposes like cinemas, theatres, circus, carnivals,
exhibition, concerts, etc. which are of temporary nature for private gain upto
20 kW of connected load for a period not exceeding 180 days.
System of Supply: As may be decided by Power & Electricity Department, Govt of
Mizoram.

Consumption Energy/Variable Charges Fixed / Demand Charges

Range (`/kWh/Month) (`/kW/Month of contracted load)
a) All units 6.00 50

A. Metered Supply:
Consumer shall be supplied with energy meter by the Department after receiving in
advance from consumer, the full cost of energy meter as security, which shall be
released to the consumer after period of connection is over provided energy meter
is not defective/damage during the connection otherwise security shall be forfeited.
Connection and disconnection charges will be extra.

Materials for service connection shall be arranged by the Department on advance

payment by consumer or the same may be arranged by the consumer as per the
specifications required by the Department, which will be the property of the
consumer after the connection period is over. In addition to this, usual
Departmental charges for connection and disconnection should be paid in advance.

99
B. Un-metered Supply:

(1) Energy Charge: Energy consumed shall be computed based on contracted

demand as per the procedure prescribed in the JERC for M&M (Electricity
Supply Code) Regulations, 2010 and billed at corresponding rate of metered
tariff

(2) Fixed / Demand Charges: ` 50/kW/Month of contracted

load.

C. Terms & Conditions:

a) Temporary power supply may be provided in accordance with the power
delegation as furnished below:

1) S.D.O concerned - upto 30 days.

2) E.E. concerned - upto 120 days.
3) S.E. concerned - upto 180 days.
b) The energy cost as per tariff above along with connection & disconnection
charge will be realized in advance from the applicant before making the
supply available to him.

c) The complete wiring for which temporary supply of power is required shall be
arranged by applicant at his own expense. It will also be the responsibility of
the applicant to ensure that the wiring conforms to the technical requirements
as specified by Power & Electricity Department.

d) Supply will be given only after obtaining proper security for meters and after
realizing a prepayment @ `50.00 per kW of connected load or part thereof, in
advance which will finally be adjusted against consumption bill.

D. Payment: Charges for temporary connection shall be paid in advance against bill to
be served.

(a) Bill based on actual consumption and daily fixed charge shall be served to
the consumer at reasonable interval. The amount of each bill shall be
adjusted from the amount of advance prepaid.

(b) In the event that the total amount of advance paid is found short of the
amount of the bills served as above, the Department shall be at liberty to
request the consumer to pay additional payment in advance as required
based on this tariff.

100
 (d) If the consumer fails to pay the additional payment, the Department shall be
at liberty to discontinue the temporary power supply.

(e) The advance amount paid and the consumption bill shall be adjusted in full
immediately after the termination of the temporary power supply.

Note: For all units mean the consumers shall be billed for the whole unit consumed at
the corresponding rate fixed for the slab.

2. HT Supply Tariffs
General Conditions of HT Supply

1) The tariffs are applicable for supply of Electricity to HT Consumers having

loads with a contracted demand of 60 kVA and above and / or having a
connected load exceeding 50 kW / 67 Hp

2) Maximum Demand
Maximum demand shall be the highest value of average load measured in KVA
or KW as the case may be, delivered at the point of commencement of supply
of the consumer during any consecutive 30/15 minutes period of maximum
used (depending upon a time of meter being used) in the said Month.

3) Billing Demand
The billing demand shall be the maximum demand recorded during the
Month or 80% of the contracted demand whichever is higher.

Category - I: Domestic

Applicability: This tariff is applicable to similar purposes defined in LT category 2-

Supply for domestic light and power, provided that the connected load for common
facilities such as Non-domestic supply in residential area street lighting and water supply
etc shall be within the limits specified here under.

Water supply & Sewerage and street lighting and general purpose put together 10% of
total connected load

System of supply: AC 50 Cycles, 11000 Volts and above

A) Metered Supply

(1) Fixed/Demand Charges: ` 30/kVA/Month of billing demand

plus
(2) Energy Charges: ` 3.30/kWh/Month for all Units

101
B) Un-metered Supply
(1) Demand Charges: ` 30/kVA/Month of contracted load or part thereof plus
(2) Energy Charges: Energy consumed shall be computed based on
contracted demand as per the procedure
prescribed in the JERC for M&M (Electricity
Supply Code) Regulations, 2010 and billed at
corresponding rate of metered tariff

Category - 2: Commercial

Applicability: This tariff is applicable to similar purposes defined in LT Category-3

supply to Commercial Purposes.

System of supply: AC 50 Cycles 11000 V and above

(1) Fixed/Demand Charges: ` 60/kVA/Month of billing demand
plus

(2) Energy Charges: ` 4.20/kWh/Month for all Units

A. Unmetered Supply
(1) Fixed/Demand Charges: ` 60/kVA/Month of contracted load or part thereof
plus

(2) Energy Charges: Energy consumed shall be computed based on

contracted demand as per the procedure
prescribed in the JERC for M&M (Electricity
Supply Code) Regulations, 2010 and billed at
corresponding rate of metered tariff

Category - 3: PWW

This tariff is applicable to similar purposes defined in LT Category-5 - Public water

works

System of supply: AC 50 Cycles 11000 V and above

A) Metered Supply
(1) Fixed/Demand Charges: ` 80/kVA/Month of billing demand
Plus

102
 (2) Energy Charges: ` 4.20/kWh/Month for all Units

B) Unmetered Supply
(1) Fixed/Demand Charges: ` 80/KVA/Month of contracted load or part thereof
plus

(2) Energy Charges: Energy consumed shall be computed based on

contracted demand as per the procedure
prescribed in the JERC for M&M (Electricity
Supply Code) Regulations, 2010 and billed at
corresponding rate of metered tariff

Category - 4: Irrigation & Agriculture

Applicability: This Tariff is applicable to irrigation / pumping for agricultural purpose

only.

System of supply: AC 50 cycles 11000 V and above

A) Metered Supply
(1) Fixed/Demand Charges: ` 30/KW/Month of billing demand
Plus
(2) Energy Charges: ` 1.20/kWh/Month for all Units

B) Unmetered Supply
(1) Fixed/Demand Charges ` 30/kVA/Month of Contracted Load
Plus
(2) Energy Charges: Energy consumed shall be computed based on
contracted demand as per the procedure prescribed in
the JERC for M&M (Electricity Supply Code) Regulations,
2010 and billed at corresponding rate of metered tariff.
Category - 5:Industrial

Applicability: This Tariff is applicable to similar purpose defined in LT Category of

supply to Industrial purposes.
System of supply: AC 50 cycles 11000 V and above
A) Metered Supply
(1) Fixed/Demand Charges: ` 80/kVA/Month of billing demand
Plus
(2) Energy Charges: ` 3.30/kWh/Month for all Units

103
B) Unmetered Supply
(1) Demand Charges: ` 80/kVA/Month of contracted demand.
Plus
(2) Energy Charges Energy consumed shall be computed based on
contracted demand as per the procedure prescribed in
the JERC for M&M (Electricity Supply Code)
Regulations, 2010 and billed at corresponding rate of
metered tariff

Category - 6: Bulk supply within the State

Applicability: This tariff is applicable for including mixed loads similar to LT category 2 &
3 such as private sector installation educational institution, defense installation,
government and public sector offices and complexes Hospitalities etc… who arranges
their own distributions system of power within the premises with the approval of
competent authority. This will not include industrial complexes which may consisting
mixers load of LT category 2 & 3 and HT category 5.
System of supply: AC 50 cycles 11000 V and above

A. Metered Supply:
(1) Fixed/Demand Demand Charges: ` 80/kVA/Month of billing demand.
Plus
(2) Energy Charges: ` 3.30/kWh/Month for all Units

B. Un metered supply:
(1) Fixed/Demand Charges: ` 80/kVA/Month of Contracted Load
Plus
(2) Energy charges: Energy consumed shall be computed based on
contracted demand as per the procedure prescribed
in the JERC for M&M (Electricity Supply Code)
Regulations, 2010 and billed at corresponding rate
of metered tariff

3. COMMON ITEMS
a) Rebate for advance payment: For payment of energy bill made within due
date, Rebate of @ ` 0.05 per unit (will be allowed).

b) Payment: Payment against bills in full shall be made by cash/Treasury

Challan/DD/local cheque only unless otherwise accepted by the competent

104
 authority within the last date for payment. Bank commission/charges, if any
should be borne by the consumers.

c) Surcharge for late payment of bills: If payment is not received within due
date surcharge @ 2% on the outstanding principal amount for each 30 days
successive period or part thereof will be charged, until the amount is paid in
full.

d) Single Point Delivery: This tariff is based on the supply being given through
a single point of delivery and metering at one voltage. Supply at other points
at other voltage shall be separately metered and billed for and shall be
considered as separate connection.

e) Voltages and frequency: All voltages mentioned in this tariff are only
nominal voltages and alternating current (AC) with nominal frequency of 50
Hertz (i.e. 50 cycles per second) and may not be 100 % correct in practical.

f) Surcharge for low Power Factor: Power factor for the Month shall be the
ratio of kWh and kVAh supplied to the consumer during the Month. The
power factor of consumer’s installation shall not be less than 85%. If the
power factor falls below 85% during any Month, the consumer shall pay
surcharge as detailed below:

Power factor range Surcharge

For every 1% fall below 85% Surcharge at 0.5% on energy charge and
demand charges will be levied subject to
a maximum of 2.5%.

Should the power factor drop below 70% and to remain for a period of 2
consecutive Months it must be brought up to 85%within a period of 6 Months
by methods approved by the licensee failing which without prejudice to the
right of the licensee to collect surcharge and without prejudice to such other
rights as having accrued to the licensee or any other right of the licensee,
consumer connection may be discontinued.

All LT consumers whose connected load include Welding Transformers or

induction meters of 3HP and above shall be required to have suitable shunt
capacitors installed as per Chapter 4 clause 4.6(1) & (2) of JERC for M&M
(Electricity Supply Code) Regulations, 2010 to ensure power factor is not less
than 85%. Failure to install required rated capacitors as indicated in the

105
 above regulations or the capacitors installed became defective, surcharge at
25% on the bill amount shall be levied till sound and adequate capacitors are
installed. LT consumers who are provided with electronic meters which can
record power factor will however become under the preview of clause 6
above and power factor surcharge will be levied accordingly.

g) Transformation loss: The consumers getting their supply at HT and metered

on the LT side shall be charged an additional 3% over the metered
consumption as transformation loss.

h) Contracted demand for calculation of fixed/demand charges in the monthly

billing shall be rounded upto 500 watt or part thereof. The minimum allowed
connected load for calculation of fixed/demand charges is 500 watt except KJ
category.
i) The unmetered consumers may further be classified and the corresponding
energy consumed shall be computed as per the procedure prescribed in the
JERC for M&M (Electricity Supply Code) Regulations, 2010 as below:

(i) Regular consumer without energy meter – Annexure – 8, Assessment

Report, Sub-no. 1.

(ii) Defective meters – Regulation 9.6.

(iii) Un-authorised consumers – Annexure – 8.

In case of any inconsistency between the Joint Electricity Regulatory

Commission for Manipur and Mizoram (Electricity Supply Code) Regulations,
2010 and this Tariff Schedule, the provisions and meanings content in the
said code shall prevail.

4. Miscellaneous Charges
4.1 Meter Rent: Monthly charges for hiring of the meter and indicators where they
are the property of Power & Electricity Department payable by the consumers
shall be as follows:

4.1.1 LT Metering:
a) Energy meter for AC single phase LT supply: `15.00 per meter per Month.

b) Energy meter for AC three phase supply : ` 30.00 per meter per Month.
400 V between phases (without CT)

106
 c) Energy meter for AC three phase supply : `50.00 per meter per Month.
400 V between phases (with CT)

d) Any other type of meter/indicator for LT supply: ` 100.00 per meter per Month

4.1.2 HT Metering:
a) Energy meter for AC three phase HT supply: ` 200.00 per meter per Month.
b) Any other type of meter/indicator for HT supply: `300.00 per meter per Month

4.2 Other charges for meter:

4.2.1 Meter shifting charge:

a) 200.00 per shifting if resulted from reconstruction/modification of building

and at consumers request.

b) Free of cost if shifting is done in the interest of work.

Generally, the cost of energy meter for subsequent replacement will be borne by
the consumer; when the cause leading to subsequent replacement is either
manufacturing defect or Department's fault then it shall be free of cost.
4.2.2 The cost of replacement, i.e. cost of the energy meter after initial
installation shall normally be borne by the consumers at the following
rates:

a) Re-installation/Replacement charge by new meter: (exclusive of re-

installation of existing meter sent for calibration/test). ` 100.00 each and
material cost, if any will be charged extra.

b) Cost of Energy Meters supplied by Department:

As per the Department’s purchase rate plus 15% Departmental charge if
supplied from the Department (energy meters approved / tested by the
Department only shall be used).

4.2.3 Charges for testing of Meters at the request of consumers:

a) For AC single phase LT energy meter: ` 75.00 per meter per testing.

b) For AC three phase LT energy meter without CT: `100.00 per meter per testing.

c) For AC three phase LT energy meter with CT: ` 200.00 per meter per testing.

d) For energy meter AC three phase HT supply: ` 300.00 per meter per testing.

e) For any other type of energy meter HT supply: ` 300.00 per meter per testing.

107
 In case the meter fitted to the consumer premises is found to be defective from
initial fitting, testing and replacement of meter will be done free of cost.
4.3 Testing of Consumer’s Installation:

The first test and inspection will be carried out free of cost. Should any further
test or inspection is necessitated due to fault in the installation or due to non-
compliance with the condition of supply by the consumer an extra charge of
`150.00 per test, payable in advance, shall be levied. In the event of the
consumer failing to pay the testing charge in advance within stipulated time, the
Department will be at liberty to disconnect the consumer’s premise from the
supplier’s main.

4.4 Disconnection and Reconnection:

Charges towards each disconnection or reconnection as the case may be for

punitive measure shall be as follows, however for disconnection or reconnection
at the request of consumer or any other disconnection or reconnection other than
punitive measure shall be half of the rate given below:

(a) For AC single phase LT supply : ` 100.00

(b) For energy meter with/without CTs for AC three : ` 150.00

phase LT supply

(c) For AC HT supply : ` 400.00

4.5 Charges for change of category:

Charges for change of category will be done as stipulated in Joint Electricity

Regulatory Commission for Manipur & Mizoram (Electricity supply Code)
Regulations, 2010, Chapter - 6, Clause-6.1

4.6 Charges for Replacement of Connection Wire, Cut-out, Fuse, etc.:

Cost of replacement after initial fixation of connection wire, cut-out, fuses, etc. will
be borne by the consumers and shall be payable by the consumer in advance as
per purchase rate of the Department plus 15% Departmental charges if the
Department supplies the materials or the consumer may arranged required
materials as per the required specifications of the Department. In any case, the
execution charge shall be as follows:

(a) Single phase connection: ` 400.00 per connection.

108
 (b) LT three phase connection: ` 600.00 per connection.

(c) HT three phase connection: ` 900.00 per 100 meters of the HT line.

4.7 Re-rating of Installation:

Fees for re-rating of the consumer’s installation at the request of the consumer:

(a) `150.00 per case of upward rating.

(b) ` 150.00 per case of downward rating.

These charges shall be payable by the consumer in advance. The aforesaid

charges do not include the charges payable by the consumer for other works
connected due to change of connected load.

4.8 Meter Security (if Department’s meter is used):

The amount of Security deposit for meter security shall normally be the price of
the meter as fixed by the licensee from time to time.

4.9 Charges for Replacement of tamper proof Meter Box:

(a) For AC single phase LT or three phases LT without CT or with CT, the
energy meter box if replaced from Department store: The charge will be as
per Department purchase rate plus 15% towards Departmental charge.

(b) Charges for replacement of broken glass of meter Box: As per purchase
rate of the Department plus 15% Departmental charges.

(c) For replacement of any type of meter box or broken glass, consumer will
arrange for the necessary part from his own source and the department
shall charge ` 50.00 per single phase connection and ` 75.00 for three
phase connection towards installation cost.

4.10 Charges for Testing of Transformer Oil:

(a) For first sample of oil: ` 150.00 per sample.

(b) For the next additional sample of oil of the equipment received at the same
time of the first sample: ` 100.00 per sample.

4.11 Service Lines & Service Connection:

Type of Service Connection: Type of service connection and distance for
service connection line length will be as per Joint Electricity Regulatory

109
 Commission for Manipur and Mizoram (Electricity Supply Code) Regulations 2010
Chapter - 3

Cost of Service Connection: As stipulated in the Joint Electricity Regulatory

Commission for Manipur and Mizoram (Electricity Supply Code) Regulations,
2010 Chapter – 3, clause 3.5, Appendix-1 cost of material is to be assessed
based on the Department purchase rate. If the consumer desires to arrange
service connection materials, the Department (not below rank of Junior Engineer
concerned) will check all the materials.

4.12 Load Security:

The amount of load security for new service connection will be calculated as per
the procedure prescribed in the JERC for M&M (Electricity Supply Code)
Regulations, 2010 (6.10)

110
 Annexure - I

Mizoram - Expected Revenue from Existing Tariff

Energy Total Fixed Total Energy Total
Connected Load Sales Fixed Charges Average
Sl. Charge Charges Charges Charges
Category Consumers Realization
No. (in kW) (in MU) (Rs./Conn/Connected (Rs./kWh) (Rs. Lakh) (Rs. Lakh) (Rs. Lakh)
(Rs/kWh)
Load)
8 = (3*6*12) 11 =
1 2 3 4 5 6 7 100000 9 = 5*7*10.0 10 = 8+9 (10/5)/10.0
1 Kutir Jyoti                  
i) 1 - 15 7960 927.67 2.08 10 0.90 9.55 18.72 28.27 1.36
ii) 16 - 30 5628 458.75 2.30 10 1.05 6.75 24.15 30.90 1.34
iii) > 30 3912 419.87 3.62 10 1.50 4.69 54.30 58.99 1.63
  Sub Total 17500 1806.29 8.00    20.99 97.17 118.16 1.48
2 Domestic                  
i) 1 - 50 68272 58675.40 38.14 25 1.50 176.03 572.10 748.13 1.96
ii) 51 - 100 47182 49325.84 51.04 25 1.85 147.98 944.24 1092.22 2.14
iii) 101 - 200 39368 51012.89 74.61 25 2.50 153.04 1865.25 2018.29 2.71
iv) > 200 20178 51405.45 58.21 25 3.50 154.22 2037.35 2191.57 3.76
  Sub Total 175000 210419.57 222.00    631.27 5418.94 6050.21 2.73
3 Domestic HT 10 1144.00 0.50 30 3.00 4.12 15.00 19.12 3.82
  Total Domestic 192510 213369.86 230.50    656.38 5531.11 6187.49 2.68
4 Commercial           0.00      
i) 1 - 100 3000 6768.54 3.39 50 2.30 40.61 77.97 118.58 3.50
ii) 101 -200 1550 3177.74 4.25 50 3.60 19.07 153.00 172.07 4.05
iii) > 200 1450 9457.65 14.36 50 4.00 56.75 574.40 631.15 4.40
  Sub Total 6000 19403.92 22.00    116.43 805.37 921.80 4.19
5 Commercial HT 48 601.48 1.50 60 3.80 4.33 57.00 61.33 4.09
  Total Commercial 6048 20005.40 23.50  120.76 862.37 983.13 4.18
6 Public Lighting 897 1699.29 7.00 50 4.25 10.20 297.50 307.70 4.40
7 PWS LT 11 570.08 0.50 50 4.00 3.42 20.00 23.42 4.68
8 PWS HT 30 32012.88 42.00 80 3.80 307.32 1596.00 1903.32 4.53
9 Irrigation & Agri LT 25 20.00 1.00 20 1.10 0.05 11.00 11.05 1.11
10 Irrigation & Agri HT 2 93.50 0.25 30 1.10 0.34 2.75 3.09 1.24
11 Industrial LT                  
i) 1 - 400 266 4010.35 0.70 50 3.00 24.06 21.00 45.06 6.44
ii) > 400 409 1713.15 0.30 50 3.50 10.28 10.50 20.78 6.93
  Total Industrial 675 5723.50 1.00    34.34 31.50 65.84 6.58
12 Industrial HT 15 2419.12 0.50 80 3.00 23.22 15.00 38.22 7.64
13 Bulk Supply HT 250 28246.77 20.00 80 3.00 271.17 600.00 871.17 4.36
  Grand Total 200463 304160.40 326.25    1427.20 8967.23 10394.43 3.19

111
 Annexure - II
Mizoram - Expected Revenue from Proposed Tariff
Energy Total Fixed Total Energy Total
Connected Load Sales Fixed Charges Average
Sl. Charge Charges Charges Charges
Category Consumers Realization
No. (in kW) (in MU) (Rs./Conn/Connected (Rs./kWh) (Rs. Lakh) (Rs. Lakh) (Rs. Lakh)
(Rs/kWh)
Load)
8 = (3*6*12)
1 2 3 4 5 6 7 100000 9 = 5*7*10.0 10 = 8+9 11 = (10/5)/10.0
1 Kutir Jyoti                  
i) 1 - 15 7960 927.67 2.08 10 1.00 9.55 20.80 30.35 1.46
ii) 16 - 30 5628 458.75 2.30 10 1.20 6.75 27.60 34.35 1.49
iii) > 30 3912 419.87 3.62 10 1.70 4.69 61.54 66.23 1.83
  Sub Total 17500 1806.29 8.00    20.99 109.94 130.93 1.64
2 Domestic                  
i) 1 - 50 68272 58675.40 38.14 25 1.70 176.03 648.38 824.41 2.16
ii) 51 - 100 47182 49325.84 51.04 25 2.10 147.98 1071.84 1219.82 2.39
iii) 101 - 200 39368 51012.89 74.61 25 2.80 153.04 2089.08 2242.12 3.01
iv) > 200 20178 51405.45 58.21 25 3.90 154.22 2270.19 2424.41 4.16
  Sub Total 175000 210419.57 222.00    631.27 6079.49 6710.76 3.02
3 Domestic HT 10 1144.00 0.50 30 3.30 4.12 16.50 20.62 4.12
  Total Domestic 192510 213369.86 230.50    656.38 6205.93 6862.31 2.98
4 Commercial           0.00      
i) 1 - 100 3000 6768.54 3.39 50 2.60 40.61 88.14 128.75 3.80
ii) 101 -200 1550 3177.74 4.25 50 4.00 19.07 170.00 189.07 4.45
iii) > 200 1450 9457.65 14.36 50 4.45 56.75 639.02 695.77 4.85
  Sub Total 6000 19403.92 22.00    116.43 897.16 1013.59 4.61
5 Commercial HT 48 601.48 1.50 60 4.20 4.33 63.00 67.33 4.49
  Total Commercial 6048 20005.40 23.50  120.76 960.16 1080.92 4.60
6 Public Lighting 897 1699.29 7.00 50 4.75 10.20 332.50 342.70 4.90
7 PWS LT 11 570.08 0.50 50 4.40 3.42 22.00 25.42 5.08
8 PWS HT 30 32012.88 42.00 80 4.20 307.32 1764.00 2071.32 4.93
9 Irrigation & Agri LT 25 20.00 1.00 20 1.20 0.05 12.00 12.05 1.21
10 Irrigation & Agri HT 2 93.50 0.25 30 1.20 0.34 3.00 3.34 1.34
11 Industrial LT                  
i) 1 - 400 266 4010.35 0.70 50 3.00 24.06 21.00 45.06 6.44
ii) > 400 409 1713.15 0.30 50 3.50 10.28 10.50 20.78 6.93
  Total Industrial 675 5723.50 1.00    34.34 31.50 65.84 6.58
12 Industrial HT 15 2419.12 0.50 80 3.30 23.22 16.50 39.72 7.94
13 Bulk Supply HT 250 28246.77 20.00 80 3.30 271.17 660.00 931.17 4.66
  Grand Total 200463 304160.40 326.25    1427.20 10007.59 11434.79 3.50

112
 Annexure - III

Minutes of the 9th Meeting of the State Advisory Committee (SAC) for the State of
Mizoram

The 9th Meeting of the State Advisory Committee for the State of Mizoram was held on
28th May, 2012 at the Conference Hall, I & PR Directorate, Aizawl, under the
Chairmanship of Shri H. Bihari Singh, Chairperson, JERC for M&M.

In his welcome speech, Pu. A. Chawnmawia, Secretary, JERC for M&M and Member -
Secretary, SAC Mizoram, informed the Committee of the retirement of Pu. C.
Hmingthanzuala IAS (Rtd), Member, JERC last month and the appointment of a new
Member representing Mizoram in near future and also requested all the Members to take
part in the discussion on a cause of the State.

The Chairman also informed the Committee that the 9th Meeting of the SAC could have
been arranged after the new Member joins the Commission. However, it was decided to
have the meeting early as the determination of Retail Tariff for the State of Mizoram was
already delayed on one hand and the discussion on different aspects of each of the
components of the annual expense and the proposed new tariff by the Committee was
needed before public hearing on the other. The Chairman then initiated the discussion
agenda wise.

Agenda 1. Confirmation of the Minutes of 8th Meeting of SAC held on 27th

February, 2012

Dr. H. Vanlalhluna, President, All Mizoram Farmers’ Union (AMFU) wanted to have the
details of the Action Taken on earlier recommendations of SAC by the Department /
Government, before the next agenda is taken up. The President, AMFU expressed
concern particularly over the initiatives taken by the Department to motivate the innocent/
general consumers through lectures/ debate/ interactions in the educational institutes as
agreed upon in earlier meetings.

Pu. K Lalhminthanga, President, Mizoram Chambers of Industries and Commerce

(MCI&C) also supplemented that actions on the previous resolutions must be put in black
and white for record and reference.

In reply, Pu. C.L. Thangliana, E-in-C, P&E Department, informed the Committee that the
Department has already started making publicity and drawing awareness of the

113
consumers through local channels of the electronic media and other print media of Aizawl
and other districts. The E-in-C further stated that the publicity is being continued in a big
way to cover more consumers in the State.

The Chairman reiterated that recommendations of the SAC are considered by the
Commission and necessary actions are taken up with the State Government and
concerned Departments. Action Taken reports will be placed before the SAC in future.

The Committee gave nod to the declaration of the Minutes of the 8th Meeting of the SAC
Mizoram as confirmed.

Agenda 2. Determination of Tariff for the P&E Department, Mizoram for the FY
2012-2013

The Chairman then took up the next agenda and drew the attention of the Members to the
general background and a brief note of the Tariff Petition filed by the P&E Department,
Mizoram for FY 2012-2013.

Dr. H. Vanlalhluna, President, AMFU, wanted to know from the concerned authority the
tentative date on which the Load Shedding in the State will be lifted and measures to
control theft of energy. Expressing concern over the load shedding the P&E Department
resorted to during the peak hours, Pu. K. Lalhmingthanga, President, MCI & C, also
wanted to know the detailed programme being evolved by the Department for
improvement of power supply and for lifting load shedding in the State.

Pu. C.L. Thangliana, E-in-C, P&E Department explained elaborately how power supply is
managed in the State of Mizoram. The E-in-C stated that against a restricted requirement
of 80 MW (unrestricted being 100 MW or so), the State is supposed to get about 73 MW
of power as its allocated share from the Central Sector Generating Stations.

However, the actual receipt from these Stations at an average varies from 50 MW to 60
MW depending upon the operational limitations the plants have due to shortage of water,
technical snag in the machine & the transmission lines that pass through inhospitable
areas etc. The State’s own generation is about 20 MW. Therefore, there is a shortfall of
about 30 MW during the peak hours in the State. This is the main reason why the
Department is very unwillingly resorting to load shedding for few hours in rotation in the
State.

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About the measures taken for improvement of the situation, the E-in-C went on to explain
that substantial reduction of Loss through the implementation of specific programmes
over of a period of three years or so from now, under R-APDRP (Re-structured
Accelerated Power Development and Reform Programme) would help the State increase
its availability of power to the advantage of the Consumers. The gradual reduction of loss
from the present level of about 30 p.c. to a standard level of 15 p.c. would be
accomplished by then and resultant saving of about 10 MW would enable the Department
to reduce the Shedding time.

Besides the internal measure, the Department is also expecting its share of 22 MW from
Gas Based Power Plant (726 MW), ONGC and Tripura Power Corporation Ltd (OTPC),
Palatana, Tripura, from July, 2012 onwards and this will provide much relief to the
consumers of the State. Another 32 MW of power will also be received by the State from
NTPC Power Plant (750 MW) at Bongaigaon in near future. The E-in-C was hopeful that
with these near completion projects in line, the Department may not find any difficulty in
the power supply management of the State.

Under the long-term measures, the E-in-C apprised the Committee of the large, medium,
small hydro projects which are in pipeline and at various stages of survey & investigation
by different agencies.

Coming again to point of the high ATC loss rate in the State, Pu. K. Lalhmingthanga,
President, MCI & C informed the Committee that theft cases are rampant in the State and
behind every case, there is apparently a hand from the Department side. This needs to be
checked at all cost to help reduction in tariff for the regular and honest consumers.

Dr. Lalrinthanga, Economics Department, Mizoram University, also stated that theft cases
could not be detected even though large number of theft cases are happening in many
areas. Simply because, the confidentiality could not be maintained and the thieves came
to know about the detection drive in advance. Therefore, Dr. Lalrinthanga felt that
Department Staffs are deliberately involved in the process. The head of the Department
should take appropriate action to check and control it.

The Chairman drew the attention of the Committee to the very high cost of purchase of
power constituting 54 p.c. of the proposed ARR. The Supplementary Bills for an amount
of Rs. 41.82 crores included in the power purchase cost of 2012-13 is for the Energy
purchased in previous years for which revised tariffs are determined retrospectively by the
Central Electricity Regulatory Commission. The Chairman also briefly explained about the
would be impact on the retail tariff by such payment. The Committee Members

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deliberated at length. Finally, it was decided, keeping in view the tariff support to the
extent of Rs. 234 crores from the State Government to respect the decision of the CERC.

The Employee Cost, which is all time high was discussed next. Dr.H. Vanlalhluna,
President, AMFU, Pu. K. Lalhmingthanga, President, MCI & C and Pu. Sandingliana
MCS, Director, LAD took part in the discussion on high employee cost and its impact on
the consumers of the whole State. The Chairperson, JERC stated that the manpower
productivity of employee per kilowatt-hour in Mizoram is the highest in the country.

Offering his views on it, Pu. C.L. Thangliana, E-in-C stated that, for small State like
Mizoram where prospects for employment in private sector are practically negligible, the
State Government may have specific policy for employment at different grades. That may
be the reason behind accepting such a huge tariff support by the State Government. The
Chairman also supplemented saying that employment in public sector is an issue on
which the State Government alone takes the decision.

The projected R&M expenses for the FY 2012-13 is 4 times the approved R&M cost of
2010-11 and is very high. The Committee decided to accept the amount of R&M Expense
considering the permissible amount as per the Regulations.

In the matter of tariff, the Chairman informed the Committee that the P&E Department has
proposed a rise of 6 p.c. above the previous tariff (FY 2010-11). The Department has also
proposed non-telescopic type of billing – same as the prevailing type, to the consumers.
This kind of billing is found to be simpler and it also keeps the consumer informed of
economic use of electricity.

Dr. H. Vanlalhluna, President, AMFU felt that a rise of 15 paise per unit in respect of
Agriculture Consumer, as proposed by the P&E Department, is high apparently.

Pu. Sandingliana MCS, Dir, LAD once again raised the issue of payment of electricity
charges for the Street Lamps by LAD, and informed the Committee of the hardship the
LAD is finding in mobilizing the fund for it in the absence of any Budget Provision. The
Chairman reiterated that fund for the maintenance of the street light needs to be provided
and informed the Member to pursue the matter with the State Government.
Observations of the Committee

1. Supplementary Bills which are prepared with retrospective effect, shall not
create Tariff Shock.
2. Employee Cost is very high and its impact on tariff is tremendous.
3. Repair &Maintenance Cost is high.
4. Loss rate is still high.

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 5. Progress of Power Projects is left much to be desired.

Recommendations of the Committee

1. The State Government may foot the supplementary and unforeseen bills,
so that it is not loaded on the consumers.

2. Different Employment Policy may be adopted by the State Government in

respect of the power sector in order to make the tariff affordable and
consumer friendly.

3. The P&E Department shall expedite collection of more revenue from

consumers and minimize the R&M expenses.

4. Stringent actions may be initiated to wipe out theft of power cases and
reduce loss rate.

5. Collective Efforts may be made to complete early the hydro power projects
in the pipeline and run the sector as an Industry.

The Meeting ended with vote of thanks to the Chair.

Sd/- H. BIHARI SINGH

Chairman
State Advisory Committee of Mizoram
Memo No.H.11019/27/12-JERC : Dated Aizawl, the 5th June, 2012.
Copy to:
(1) P.S to Hon’ble Chief Minister, i/c P&E Department, Govt. of Mizoram for
kind information to the Hon’ble Chief Minister.

(2) PS to Secretary, P&E Department, Govt. of Mizoram for kind information

to the Secretary and for taking necessary action on the Minutes of the
Meeting.

(3) All Members / Special Invitee / Invitees of the State Advisory Committee for
kind information and for taking necessary action on the Minutes of the
Meeting.

(4) Guard File.

Sd/- A. CHHAWNMAWIA
Secretary

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 Annexure – IV

List of persons who attended in the Public Hearing held on 3rd July, 2012 at I & PR
Department’s Conference Hall, Treasury Square, Aizawl.

A. Objectors
1. Mr. P. Lalupa, President, Mizoram Consumers’ Union, Aizawl

2. Mr. Laldingliana Sailo, Secretary, Mizoram Consumers’ Union, Aizawl.

3. Mr. Ngursailova Sailo, Treasurer, Mizoram Consumers’ Union, Aizawl.

4. Mr. Sainghinga Sailo, General Secretary, Mizoram Upa Pawl Hqrs, Aizawl

5. Mr. P.C. Lalmawia, Finance Secretary, Mizoram Upa Pawl Hqrs, Aizawl

6. Mr. Laldawngliana Tochhawng, CEC, Central YMA, Aizawl.

7. Mr. H. Lalliansanga, Representative, Dove Allieance, Aizawl.

8. Mr. Rodinwawia, Representative, Dove Allieance, Aizawl.

9. Mr. H. Zonuntluanga, Representative, Dove Allieance, Aizawl.

10. Mr. C. Lalmuanpuii, Representative, Vanapa Society, Aizawl.

11. Mr. Lalramhluna, Representative, Vanapa Society, Aizawl.

B. PED Officials

1. Mr. Lalduhzuala Sailo, SE (Commercial).

2. Mr. Zaithansiama, EE (Commercial).

3. Mr. Lalhminghlua, AE (Commercial).

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